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The Italian Senate is preparing to reassess the 2018 Dignity Decree, which has prohibited betting sponsorships and advertisements in sports since 2019.
The ban, which also bans advertisements within stadiums, has significantly limited clubs’ ability to generate revenue. However, the Senate Culture Committee debated on the “Prospects for the Reform of Italian Football” act last week, and while the final decision has been postponed, local media are already reporting that the ban will be officially reversed this week.
The proposed reform would also allow regulated gaming operators to display their brands in stadiums through billboards and banners. These operators would also be allowed to sponsor teams and sporting events.
With the proposed ban lifting, the government is earmarking 1% of sponsorship revenue for the refurbishment of current stadiums and the building of new ones. They also plan to invest the funds into youth and women’s football and responsible gambling initiatives.
Ban Was Strongly Opposed
The Decree has received serious backlash from stakeholders since its announcement six years ago. Many Serie A and Serie B clubs have continually pushed for its reversal, arguing that it was hurting their financial sustainability and ability to compete with other top European teams.
The 7th Senate Commission has also called for an immediate suspension of the ban, arguing that the restrictions have done a great deal of harm to the country’s regulated gambling market and placed a financial strain on professional sports. This is a sentiment shared by the European Betting & Gaming Association (EGBA), which also suggested that the ban has led to the growth of the illegal betting market.
“The country’s ban on advertising for licensed gambling operators is clearly favouring the black market,” said Maarten Haijer, secretary general of EGBA.
“Without a sufficient level of advertising, there is no real way for Italians to tell the difference between a gambling website which is licensed in Italy — and applies the country’s consumer protection rules — and one that is not.”
Even Roberto Alesse, director general of Italy’s Customs and Monopolies Agency (ADM), called the ban a “hypocritical regulation” that “cannot be applied by a liberal state.”
Clubs Found Loopholes
Before the ban was implemented, over half of the country’s top-flight football clubs had betting sponsorships. At the time, Serie A estimated that the move would lead to a loss of $734 million in tax revenue over the next three years.
However, some clubs managed to find creative workarounds. Last July, Inter Milan announced a club-record front-of-shirt sponsorship deal with Betsson under its Betsson.Sport infotainment brand.
There were plans to repeal the ban in 2022 and again in 2023 when the new government announced a broad review of gambling regulations. However, these plans were never realized, but with the Senate Commission’s backing and increased pressure from leading sports clubs and stakeholders, the ban’s reversal seems imminent.
Source: Next.io
