Italy Hopes New 'Cybersecurity Shield' Will Block Illegal Gambling Sites
Italy is preparing to introduce a nationwide cybersecurity system, tied to the upcoming Budget Law, aimed at curbing unlicensed online gambling. According to the Ministry of Economy and Finance (MEF), the new measure will target offshore operators and unauthorized domains that continue to attract Italian players despite current restrictions.
LISTEN TO THIS ARTICLE:The framework obliges internet service providers and venues with shared-access devices to implement anti-illegality software. Development is being overseen by the Customs and Monopolies Agency (ADM) in collaboration with SOGEI, the government's technology partner.
Related: Italy Extends Online Gambling License ApprovalWhen active, the software will automatically block access to gambling platforms lacking approval from Italian regulators. Officials describe it as a national safeguard intended to reinforce oversight and close gaps exploited by unlicensed operators.
ADM will draft the enforcement rules and coordinate with the Guardia di Finanza to ensure compliance. Inspectors will conduct periodic checks, and businesses found non-compliant will face financial penalties. More serious breaches, such as operating devices set to closed browsing mode that route users only to illegal portals, could result in criminal charges.
This reform comes in the wake of a Constitutional Court ruling that struck down the Balduzzi Decree's blanket prohibition on gaming machines in public spaces, arguing that it unduly restricted business freedoms.
Nonetheless, ADM has clarified that totems and closed-circuit devices dedicated exclusively to gambling remain outlawed, and the reform does not alter that prohibition.
Government leaders stress the importance of this initiative in protecting Italy's financial interests. With gambling revenues topping €21 billion annually, and around €8 billion flowing back to the state through taxation, securing the digital ecosystem is viewed as essential to long-term fiscal stability.
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The online gambling sector is a central focus of the reform. Italy holds the fourth-largest regulated gambling market in Europe, with online revenues alone exceeding €1 billion per year.
Given its rapid expansion, MEF insists that licensed operators must comply with updated standards, including responsible gambling safeguards. These include tools for tracking playtime and spending, as well as mandatory alerts during higher-risk games.
Despite the contributions of licensed operators, unregulated gambling remains a significant threat. The European Gaming and Betting Association (EGBA) estimated that in 2023, about €1 billion in play came from illegal operators, many of which benefited from loopholes created by the advertising ban imposed under the Dignity Decree.
The government is considering revisions to those advertising restrictions, with proposals moving toward a controlled system of sponsorship and marketing rather than a total ban.
Parliament is actively debating these adjustments, with input from Serie A officials, sports authorities, and media stakeholders. Sports Minister Andrea Abodi and Serie A president Ezio Simonelli have been particularly vocal in shaping potential reforms.
Under the updated licensing framework, ADM has already received 46 applications, each requiring a €7 million fee. The cybersecurity shield is regarded as a critical measure to safeguard these licensees and preserve market integrity.
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