License in Italy

20.10.2020 11:23

Owners of online casinos that focus mainly on the audience from Central Europe should definitely consider licensing in Italy. This state has been attracting investors for several years, due to its loyal legislation, low tax rate and fast license issuance procedure. Moreover, they issue casino licenses for a period of 9 years.

Why do you need a license?

The online gambling market is a very attractive and profitable thing. However, many respective gaming clubs are regularly closed due to the fact that the legality of their work is not confirmed by anything. That is only a licensed casino can operate on the territory of Italy.

Getting an Italian license

Italy is one of the non – offshore countries where it is quite profitable to pass the licensing procedure. The country has established a special office for issuing licenses. It is called AASM – Autonomous Administration Of State Monopolies. The AASM also acts as a regulator on all issues related to gambling. Only licensed casinos, poker rooms, sweepstakes, etc  can work legally in Italy. Without a state license, their activities are considered illegal, which will entail criminal prosecution, confiscation of property and closure of the gaming club. AASM also tries to quickly identify fraudulent casinos and defend the rights of ordinary players.

The controller gives the following permissions:

  1. permission to conduct gambling on the Internet;
  2. licensing of online lotteries;
  3. issuing licenses for bookmakers (horse racing and water sports).

How to obtain a license in Italy?

The process of obtaining the license differs very much from the same procedure executing in other countries of the EP. Unfortunately, there are still not enough good conditions in the country for the gambling business development.

  • Supervisory authority is responsible for licensing online casinos. The license is valid for 9 years. The work of gambling clubs as well as poker rooms and other gambling organisations is regarded as illegal without this license.
  • Price for licensing is quite moderate – 350 thousand euro ( you should keep in mind that there is 20% value-added tax). 
  • Any operator registered in the EU (beside such countries as Liechtenstein, Norway and Iceland) can apply for licensing. For this he needs to contact AASM.
  • In case of application for licensing from an operator who lives outside the EU but who has the passport of the country included in the Eurasian Economic Space, this operator has the possibility to obtain the license.
  • An online casino obtained a local license must provide services only to the Italian citizens.
  • Italian residents are prohibited to provide their gambling services to the foreing people (it is forbidden to register a site in the domain zone .com). In case of violating this rule, the owner of the company will be included in the black list.
  • If the owner of a gambling organisation provides its services on the territory of Italy without being licensed, he can be given a prison sentence up to 3 years.
  • If there was detected any violation in the work of the bookmaker’s which differs from the rules of AASM, this can entail not only a fine but also a detention up to one year (this also applies to all online games).
  • Operators who received a local license are not obliged to open a server in Italy. They can do it in other countries of the EU but only if the AASM will get access to the remote testing and control of their work.

There is another paragraph related to the new companies who haven’t worked previously in the online-gambling sphere. So if a new operator wants to obtain a license, he must:

  • transfer to AASM bank account 1.5 million euro;
  • audit the technical innovation of the company and convince the AASM of meeting the high standard.

Taxes in Italy

The taxes in Italy are quite low (according to the EU standards). They costs 20%. This tax is also related to:

  • online casino;
  • bookmaker;
  • poker rooms, etc.

Necessary documents (copies) for obtaining the license:

  1. the Charter of Organisation and Members Meeting, including the decision on the management staff and the name of the company;
  2. Copies of the founders’ passports (the ones who have company shares);
  3. Contract for developing a game portal;
  4. Bank statements where it is indicated the address of the Italian office of the company and utility bills;
  5. Contract of work with the partners, who supply the software.

Necessary documents (originals) for obtaining the license:

  1. Application for obtaining a local jurisdiction;
  2. Bank statements which will confirm the presence of the necessary for licensing sum;
  3. Recommendation letters from the big financial companies;
  4. Document that will demonstrate that the portal of the internet casino has the newest equipment;
  5. Business plan.

Beside that, the AASM will request to provide them the short description of the platform and all the games. The Supervisory authority will separately analyze the level of safety of the payments and users’ data.

Advantages of Italian license:

  • legal status of international company;
  • prestige;
  • right to open your own company and enter into a partnership with any bank of the EU;
  • there is no necessity to pay high taxes;
  • fast obtaining of the license.