Watch: Licencing costs and affiliate impact of Italy's evolving gaming market
Italy’s evolving gaming market is presenting major challenges for operators, mainly due to rising licencing costs. Speaking with SiGMA TV, Giovanni Galintino, Chief Marketing Officer of BetAffiliation, highlighted that the cost of a gaming licence in Italy will amount to approximately €7 million, with additional fees pushing the initial investment to around €10 million.
“This situation could reduce the competition because big operators will continue to pursue [licences], but probably smaller companies could have some problems,” Galintino said. He warned that fewer operators in the market could lead to reduced competition, which may raise concerns regarding fair competition across the European Union.
Affiliates brace for potential revenue impact
As CMO of BetAffiliation, a prominent affiliate network connecting operators with affiliates, Galintino expressed concern that the new licencing costs may impact affiliate revenues. “This challenge of new licences probably could [mean] the operator could reduce the revenue because they compensate [for] the cost of [the] licence,” he explained.
For affiliate networks like BetAffiliation, which rely on successful partnerships with operators, this could create obstacles. “We should work to create a win-win situation between operators and affiliates,” Galintino added.
Strict regulatory framework for advertising
Italy’s strict regulatory framework, known as the “Dignity Decree,” heavily limits both direct and indirect gambling advertisements.
“Responsible gaming is the most important thing for us, but also for all operators,” Galintino said. BetAffiliation closely monitors compliance with these regulations and works with affiliates to ensure responsible practices. “We report the situation to our affiliates, especially for the social affiliates called Tipsters,” Galintino explained, referring to influencer-style content creators in the betting space.
Sportsbook remains the market’s key focus
Despite these challenges, Galintino remains optimistic about key sectors in the Italian market. “In my opinion, the most important focus is on online gaming of sportsbooks,” he said. He attributed this to Italy’s strong passion for football, noting that Italian bettors are highly engaged with betting on various soccer events.
“Many end users are also interested in new types of slot graphics, but sportsbook is the most important thing for the Italian market,” Galintino said.
SiGMA Central Europe to strengthen market opportunities
Galintino also welcomed the upcoming SiGMA Central Europe in Rome, viewing it as a valuable opportunity for both Italian operators and affiliates.
“[It] could be interesting to so many Italian operators and could reach so many Italian affiliates,” he said. Highlighting Rome’s strategic location, Galintino added, “Rome is a good connection for the rest of Europe for sure. BetAffiliation will attend SiGMA in Rome, and [we are] looking forward to seeing you in Rome.”
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