Spain and Italy Make New Gambling Regulations, Liberalization

Regulators in Spain and Italy have passed legislation to liberalize land-based and Internet betting, sparking a wave of license applications from foreign operators.

In Italy, the government is auctioning off 17,000 licenses for sports and horse racing betting at shops and other outlets. Companies have been invited to bid for the number of outlets for which they want licenses. Sports wagering online will also be allowed.

Remote casino gaming and brick-and-mortar casinos are also being regulated by Italy. More than 30 companies-- many of them bookmakers, including Betfair, William Hill and Unibet-— have already received licenses to offer remote gaming. Remote wagering on skill games and person-to-person betting exchanges is also being regulated.

The Spanish federal government has enacted legislation allowing sports betting in shops, retail outlets and online, and regional governments were given the ability to impose conditions as they see fit. Madrid's regional government published regulations outlining its licensing conditions last month. Unlike Italy, Madrid has established a fixed license fee and a limited number of licenses, however, license holders can open as many shops and outlets as they please.

Britain's largest betting operators appear well-placed to take advantage of the opening markets. Gala Coral already operates an Italian-language Internet site and a betting shop in Genoa. Ladbrokes entered into a joint venture agreement with Italian firm Pianeta Scommesse in August and bought three betting shops in Turin last month. And William Hill is finalizing a joint venture with Spanish firm Codere after the European Commission announced last week that it would not oppose such a partnership.

Italy had, until recently, resisted the notion of allowing foreign companies to offer Internet betting and gaming products to its citizens. The Italian Ministry of Economy and Finance had gone so far as to order the country's Internet Service Providers to block access to the websites of foreign betting operators in February. But when foreign betting operators complained Italy's policies violated European Union free trade laws, the country became one of nine Member States against whom the European Commission launched infringement proceedings.

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