PATNER EDITORIAL
Towards the reorganization of the online gaming in Italy: what the new statute says ITALY’S DRAFT LEGISLATIVE DEGREE ON THE REORGANIZATION OF GAMING RAISED EYEBROWS WHEN IT WAS PUBLISHED. LUDOVICO CALVI LOOKS AT WHAT IT CONTAINED
Current Market Overview The global online gambling & betting market size was valued at US$58.2 billion in 2021 and is projected to approach $SD145.6 billion by 2030, expanding at a compound annual growth rate (CAGR) of approximately 12 percent from 2022 to 2030. This expansion is driven by advancements in technology, wider internet access and the legalization of online betting in various regions bringing as yet untapped markets onstream. Challenges for New Entrants Despite this increase in the total addressable market, getting into the online gambling market has never been tougher. Robust regulations, high initial investment requirements and tough competition from established firms are only a few of the reasons. Securing a license in some markets can require an investment exceeding US$100,000, with recurring compliance costs adding to the financial burden. This is before any customers are recruited which necessitates promotions and substantial
marketing budgets running into the millions of dollars. Given that the online world knows no borders, it is very unusual for a gaming operator to stick to one jurisdiction. It is has become the norm that online operators will try to capture audiences from various regions, gaining scale economies as they do so. However, the fragmented licensing systems across the globe make it extremely difficult, if not impossible for operators to establish themselves in different regions and comply with all local regulations. The EU and the US missed a unique opportunity to devise a harmonised approach across all the states within their respective unions. What’s done is done, however and it’s useless crying over spilt milk. Potential for Start Ups Despite these obstacles, specific segments within the online gambling landscape do still present promising opportunities for new ventures. The incorporation of technology offers improved security and transparency benefits that address some trust- related concerns in the industry.
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IMGL MAGAZINE | APRIL 2024
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