Casino in Italy: Establish a Business of the European Format

Owners of gaming sites that are focused on the European audience should consider an opportunity to certify their gambling business in Italy. The country attracts investors with loyal legislation, low taxes, an accelerated issuance of a residence permit, and one of the longest validity periods of gambling licenses — 9 years.

If you need assistance in launching a casino in Milan, Italy, and other popular tourist zones, please contact Smart Money. We are ready to undertake a project of any format and guarantee that you will start getting a net profit by the end of the first year of work.

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Gambling Business in Italy: Information on the Jurisdiction

Interesting fact: a casino in Rome, Italy, is considered the oldest gambling institution in Europe.

This business in Italy is one of the most effective ways to boost the coffers. The government is trying to create the most comfortable conditions for foreign investors. Land-based gambling clubs are located in the largest tourist zones. For example, the casino in San Remo, Italy, annually brings more than 8 billion euros.

A specialized instance — the Autonomous Administration of State Monopolies — has been created for casino licensing. The regulator legalizes iGaming startups, is responsible for compliance management, and resolves issues related to the development of the industry.

The country became the first member of the European Union to implement clear statutory requirements and the online gaming market regulatory policy. On the territory of Italy, you can organize any kind of gambling activity (slot machines, lotteries, sports betting) but the advertising of such services has been forbidden by law since January 2019.

Legal provisions that regulate gambling in Italy are slightly different from standard EU legal norms.

Features of the Italian casino industry:

• the license is issued for 9 years;
• gambling business in Italy can be done by any operator from the EU (except for investors from Iceland, Norway, and Liechtenstein);
• operators with a CES passport are dispensed from the mandatory opening of a physical representative office in the country;
• it is possible to provide gambling services to the local population only via the virtual platform “.it” (this service is connected with the governing body and is used to control bets and tax deductions);
• residents of a country cannot use gaming sites in the “.com” format (the violation of this rule may lead to the inclusion of the casino platform in the blacklist of the regulator);
• monetary sanctions (fines up to 5 thousand euros) and imprisonment up to 1 year are the punishment for the violation of rules of the gambling business;
• server equipment may be located outside the country but only in the EU.

Separate regulations are provided for investors with no experience and enterprises that are not related to the gambling industry. If an applicant belongs to one of these categories, in order to purchase a license in Italy, he will need to fulfil the following conditions:

• provide the authorized body with a bank guarantee in the amount of at least 1.5 million euros;
• carry out an audit of technical support and an assessment of the effectiveness of employees.

The License in Italy: Price of the Service

One of the distinctive features of the country's financial policy is a one-time charge. The flat rate for the legalization of a casino startup is 350 thousand euros (plus the value-added tax of 20% of the indicated amount of money).

The price includes a full range of necessary procedures (compliance test, the audit of the casino platform, assessment of work of technical support) and does not provide for additional deductions and hidden fees.

Tax Rate

The size of a commission fee depends on the format of the provided service.

Gambling in Italy is subject to income tax. The flat rate for online enterprises is 27.5%.

Requirements for Operators

To launch a casino that was licensed in Italy, applicants must fulfil the following conditions:

1. Registration of a local representative office. An investor can create a new company or open a branch of an already existing brand (it is relevant for residents of the European Union).
2. Financial guarantee. The required reserve fund should contain 1.5 million euros.
3. Audit and control of technical compliance. You can order the service only from those providers who are included in the list of the local gambling department.
4. Connection of a casino project to the ADM system (a local regulator). Interaction with the platform allows an authorized body to monitor the quality of the provision of gambling services and timely payment of taxes and block access to the website for minors.

If entrepreneurs have cleared these items, they will be able to start collecting a package of documents.

To buy the Italian casino license, you will need to provide the following documentation:

• articles of association (copies of the decision of the board of directors, the company’s charter, the certificate of naming of the brand);
• information on the interested parties (passport data, CV, letters of recommendation from the founders, management, and shareholders, etc.);
• a bank statement that confirms the presence of the reserve fund;
• contracts with suppliers (copies of existing contracts with software vendors, payment aggregators, and so on);
• the results of the audit of the casino;
• confirmation of the availability of server equipment (copy of the certificate of purchase/lease of physical devices);
• description of the game content (from the name of each slot machine to information on suppliers, technical characteristics, and established limits);
• business plan for the first 3 years of work (the documentation should contain detailed financial forecasts, a description of credit programs, and information on other sources of external financing);
• copy of the receipt confirming the payment of the established fee.

What are the Advantages of Launching a Casino in Italy

The Italian gambling permit opens up the following prospects for its holders:

1. Status of the company. The platform automatically receives international status and can interact with the largest financial institutions, the world’s leading software providers, and private webmasters.
2. Legal work in the EU. The Italian license allows you to count on stable work and simplified raising of loans from European banks.
3. Speed of launch. An application is considered no longer than for 1 month.
4. Ability to start working without experience. An investor can start his own business without having vast experience in the iGaming field. To do this, it is enough to fulfil several additional conditions (it will be necessary to deposit money in the amount of the authorized capital and carry out an audit of the enterprise).
5. Lack of strict requirements for the location of server equipment. Physical devices can be located in any EU country.
6. Simplified reporting system. The procedure connected to the submission of documents was changed in order to attract foreign investors.

The Main Things About Gambling in Italy

• Casinos in Italy receive government support and several benefits. The regulator is interested in attracting investments and has significantly simplified the reporting procedure, reduced the tax rate, and introduced a simplified procedure of getting a residence permit.
• The Italian license guarantees access to the international market. Operators can legally provide services on the whole territory of Europe and raise loans under a simplified scheme.
• Permits are issued for all types of gambling activity. Foreign investors can launch online casinos and sweepstakes, organize lotteries, and accept bets on sports events.

Smart Money offers you professional support at all stages of casino licensing (from the collection of documents to the assistance in opening a local representative office).

It is always possible to buy individual products or order a turnkey solution. Our catalogue of offers includes games with live dealers, casino platforms, VR content, bookmaker franchises, exchange terminals, and much more.

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Hans Adrian

B2b Gambling Business Advisor & Strategist