Sour times for betting fans!
Author: Felix Hofer, Hofer Lösch Torricelli

In Italian lotteries, betting and gaming are covered by a State monopoly and may be exercised only by specifically licensed subjects. The Government collects taxes on these activities and a Special Administration is in charge of controlling licensees.

In recent times, concern arose with respect to foreign subjects collecting (mostly on-line or via phone) bets in Italy on lotteries or events performed abroad. The Government considered those activities as illegal and therefore the Special Administration for State Monopoly took action against a widespread phenomenon.

A specific regulation was issued in order to prevent unlicensed subjects from promoting participation in games, bets, lotteries or contests performed on-line and awarding money prizes to local residents.

In detail the new regulation provides that:

• the Special Administration, when becoming aware of activities aimed at promoting on-line betting and gaming, delivers an immediate notice to providers of communication services (i.e. ISPs as well as Telcos),
• the notice will contain a deadline and an injunction forcing providers to inhibit further conduct of illegal activities (non-compliance with the injunction implies co-liability for providers),
• inhibition will be enforced by interrupting any service (access to Internet or communication networks as well as hosting or content providing services) to infringing subjects,
• while service providers are exempt from a general obligation of supervising content transmitted on their communication networks, they are held to inform the Special Administration if they become aware of illegal activities,
• aside from criminal sanctions, the Special Administration is entitled to apply a fine from Euro 30.000 up to Euro 180.000 for each violation.