EGBA: Italy's online black market generating €1bn in GGR per year
Estimates peg the unregulated sector at a quarter of the size of the country’s regulated arena and the equivalent of eight regulated EU markets combined
The European Gaming and Betting Association (EGBA) has estimated Italy’s black market is generating almost €1bn in online gross gaming revenue each year.
The estimate comes after a report in Italian newspaper La Gazzetta dello Sport claimed €25bn per year in stakes were being placed via the Italian black market.
Of this €25bn, the report said 75% was being spent with unlicensed online operators.
The EGBA’s own internal estimates, based on an average RTP of 95%, suggests the Italian black market is equivalent in size to the regulated online gross gambling revenue of eight EU member states.
Pointing to data from data specialist H2 Gambling Capital, the EBGA said the breadth of the Italian black market equates to the regulated markets of Croatia, Cyprus, Estonia, Lativa, Lithuania, Luxembourg, Malta and Slovenia combined.
The Italian online regulated market generates around £4bn in revenue per year, meaning EGBA’s estimates peg the black market at a quarter of the size of the licensed arena.
The EGBA said the data was “concerning” given the fact customers will be gambling with operators based outside of the EU, which “do not offer them even a basic level of consumer protection”.
The EGBA also implored the Italian authorities to do more to clamp down on the black market, citing the “protection of customers” as a key priority for the body.
The EBGA said: “It is crucial that the Italian authorities do more to raise awareness among Italian gamblers about the risks associated with using unlicensed platforms based outside the EU, and to signpost the licensed operators who adhere to the regulated responsible gambling practices and regulations in the country.”
Maarten Haijer, EGBA secretary general, added that the growth of the Italian black market was linked to the country’s advertising ban.
He said: “The significant size of Italy’s online black market is concerning, yet it is not surprising given that Italy has one of Europe’s strictest advertising regimes for its licensed gambling companies.
“The country’s ban on advertising for licensed gambling operators is clearly favouring the black market.
“Without a sufficient level of advertising, there is no real way for Italians to tell the difference between a gambling website which is licensed in Italy – and applies the country’s consumer protection rules – and one that is not.
“It is evident that enforcement action against black market operators is not sufficient and that the government needs to revise its advertising rules for gambling to ensure Italian citizens can be well informed about the licensed websites in the country,” Haijer added.