Part 1: Italy – revolting populism
Part 1
Italy – revolting populism
T
he gambling sector should have known
ASAP Italia sports betting affiliate business.
better than to think it could stand aloof
from politics at this most fragile of points.
The Decree is now in effect and all forms of
advertising will come to a halt in July of this year
As populism takes a swing at the global elites, or before that as and when any given contract
so many industries are finding themselves in the comes to an end.
unfortunate position of being in the eye of the
It is clearly bad news for the online sector,
storm. Such is the case with the gambling sector and particularly online-only brands in the sports
in Italy. betting and casino sectors, but it is hard to know
The coalition government of Matteo Salvini’s
Lega and Luigi Di Maio’s Five Star Movement has
the degree to which the sector will be affected in
the months and years to come.
made much of its business-bashing credentials
The latest data provided to iGaming Business
generally, and the economy would appear to from Ficom Leisure showed the sector was in
be paying the price. The country is technically fine fettle in 2018. Sports betting gross gaming
in recession after negative GDP in the past two revenue (GGR) was up 14% for the year to
quarters and the forecasts for the current quarter €640.9m, while online casino and slots rose 25%
are less than optimistic. to €710m. With cash and tournament poker worth
Into this volatile mix, the gambling sector has
€147.2m and bingo chipping in a further €31.1m, it
become a target, not just rhetorically but also brought the total for the year to €1.53bn, up from
fiscally. The phrase is overused, but this is a true €1.31bn last year (see Chart 1).
double whammy. And yet, despite the clear
warning signs when the coalition took over, the
Chart 1: Italian online gambling GGR 2016-18 (€bn)
gambling sector appears to have been surprised
by the measures so far announced. It shouldn’t
have been.
900
800
710.0m
700
600
Well advertised
438.9m
The gambling sector’s ability to hear only what 400
it wants to hear from politicians was highlighted 300
last summer when the government announced
– to widespread surprise within the industry
– an outright ban on all gambling advertising,
whether that was TV advertising, football shirt
sponsorships or digital and affiliate marketing.
567.0m
500
200
100
0
2016
2017
2016
2017
2018
2018
Source: Ficom Leisure/AAMS
The move came as a crushing blow, not least to
the super affiliate behemoth Catena Media, which The long-term trend is impressive – 50% growth
just a month before July’s ‘Dignity Decree’ was in the online market in the past two years, rising
formally announced completed a deal to buy the from €1bn to €1.53bn. Casino and sports were
iGaming Business Market Monitor • February 2019
4