Italy: SAPAR warns land-based reform could create slot oligopoly

The National Association of Gaming Machine Operators (SAPAR) has argued that proposed reforms to Italy’s land-based gambling sector risk creating an oligopoly in the machine market.

According to SAPAR, the reforms risk handing greater market power to a small number of large concessionaires, with negative consequences for investment, innovation and player protection.

The association raised concerns during the recent Customs and Monopolies Agency’s annual assembly in Rome. It said current reform proposals overlook the role of gaming machine management companies, which it describes as key to compliance, tax revenue and territorial control.

The association stated: ‘’The draft tenders published in the media do not guarantee the viability of Italian SMEs operating in the sector. Indeed, the very real risk is the emergence of an oligopoly.’’

SAPAR also noted that while the online gambling sector leads in total stakes, it contributes only 1% of total gambling tax revenue, whereas gaming machines account for 50% of total revenue for the Treasury.

SAPAR said the sector acts as a frontline defence against illegal gambling through licensed venues, monitoring systems and cooperation with authorities.

It argued that weakening the regulated retail network could increase the risk of illegal activity and reduce consumer and minor protection.

This is not the first time discussions on land-based reform have raised oligopoly concerns.  Previous rumours suggested that the next land-based concession tender could raise starting bid prices, reduce the number of licences awarded and potentially change market concentration.

Andrea de Bertoldi, an independent member of the Chamber of Deputies, expressed concern that if the rumours are accurate, the land-based sector may be moving towards an oligopoly.