As Italy embarks on a new dawn for iGaming, recent arrests have highlighted the threat of the country’s black market.
Authorities in the Salerno region of Italy have made three arrests related to an illegal gambling ring believed to have generated over €25m in revenue between 2019 and 2022.
Domenico Chiavazzo, Paolo Memoli and Giovanni Petruzzellis have been charged in relation to the illegal gambling operation, as well as money laundering and fraudulent transfer of values, according to local media.
The raids, ordered following an investigation by the District Anti-Mafia Directorate of Salerno, also led to the seizure of properties, land, luxury cars and cash with a total value of €4m.
According to investigators, the group placed gambling machines in venues such as bars, which appeared similar in design to those supplied by the Customs and Monopolies Agency (ADM), Italy’s gaming regulator.
Fighting back
13 November marked the launch of Italy’s reformed iGaming market, as the ADM activated the 52 online gambling licences that will now comprise the sector.
The organisation has been charged with leading the changes and has set out a focus on stricter compliance measures, stronger anti-money laundering controls and addressing Italy’s significant black market presence – estimated to be worth €1bn annually.
As part of this push, the ADM was among a group of seven European regulators that last month committed to strengthening measures against illegal online gambling in the wake of concerning figures from the EU on the size of the region’s illicit market.
A European Casino Association-commissioned Yield Sec study estimated that the European Union’s black market is currently worth €80.6bn in gross gaming revenue annually, and EU member states could be losing out on over €20bn in tax revenue each year.
The European regulators have committed to sharing information on illegal operators, as well as knowledge and better practices in identifying, investigating and sanctioning operators outside the law.
ADM has also blacklisted over 11,400 domains related to illegal online gambling sites and is currently working on a “cybersecurity shield” alongside the Ministry of Economy and Finance, which will be deployed to block connections to unauthorised gambling domains on devices with public internet access.
Dignity Decree review
Among the potential changes for the market in 2026 is a rethink of the 2018 Dignity Decree, which prohibits gambling advertising.
Many industry voices have argued that the ban has inadvertently fueled the black market, and the ADM is reviewing the prohibition with the goal of seeking a balance between consumer protection and legal market visibility.
Fabio A. Bufalini, Country Director of Stake Italy, previously told iGaming Expert that “it’s no coincidence that illegal gambling has grown significantly in recent years”, while the advertising ban has been in place.
“I’m convinced that if [the Dignity Decree was overturned], we as operators should be the first to protect consumers by establishing clear and reliable rules to avoid a return to the previous ban, while also ensuring that advertising is constructive,” he added.
