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Italy’s betting market enters its next chapter
“The new regime favours established operators due to high entry costs and strict compliance,” says Francesco Papallo, Regional Director for Italy at Altenar. “However, new entrants can compete by offering unique products and agile tech solutions. The market is consolidating, but also becoming more transparent.”
With a €7 million licence fee per vertical and a nine-year term, the ADM model tilts heavily toward the big players. “Yes, the cost of the licence favours large groups,” Papallo concedes. “Smaller brands can survive by focusing on underserved segments and eventually partnerships.” In other words, the window for independents hasn’t closed, it’s just narrower, demanding sharper positioning and innovative alliances.
A sportsbook technology provider, Altenar is already adapting to this new order. “We’re enhancing stability and flexibility in our sportsbook solution to support operators from a technical and compliance point of view,” Papallo explains. In practice, that means enabling partners to navigate a market where compliance is not just a hurdle but a differentiator.
One of the industry’s quietest but most complex transitions involves operators migrating from multi-brand portfolios to single-brand structures, as required by the new rules. “In Italy, this shift has been rare over the past decade, so its full impact will emerge in the coming months,” Papallo notes. “Operators will need strong retention strategies to maintain engagement during the transition.”
Ambitious compliance roadmap
That shift will also test technology. “It’s important to mention that during the licensing transition, operators must also adopt the new Sports Betting Protocol 5.0 and we are actively working on that,” he says. Altenar’s roadmap includes a deeper focus on mobile-first architecture and AI-driven personalisation, both now core expectations of Italian regulators and players alike.
The reform sets an ambitious compliance roadmap, with go-live targets by March 2026, domain consolidation, and mandatory responsible gaming tools. “Together with our compliance team, we work daily to deliver cutting-edge solutions that help operators meet responsible gaming standards while staying competitive,” Papallo says.
The path to 2026 will not be smooth. “At Altenar, we’re used to tackling complex challenges; just recently, we successfully launched our sportsbook in Italy’s retail market,” he adds. “We continue to support operators with tailored solutions that balance compliance, scalability, and innovation.”
Managing cost and compliance risk has become a strategic art. Altenar’s approach is methodical. “We offer an integrated compliance service and phased rollouts to reduce risk, while continuing to deliver feature-rich, growth-oriented updates,” Papallo explains.
Among those features are Bet Builders, cash-out, real-time player markets, and live-streaming, particularly in football and basketball – two sports that dominate Italian betting habits. “These features are designed to provide engagement and interactivity, especially in football and basketball where demand is highest,” he says. “They serve the player directly, who increasingly prefers dynamic, personalized, and real-time betting experiences.”
But as Italy tightens player protection and moves against unlicensed sites through its €21 billion market safeguard initiative, engagement must coexist with responsibility. “There are several ways introduced by the regulator regarding player protection, and it’s mostly on the operator to handle them,” Papallo acknowledges. Altenar’s strategy, he says, is to design features that align “with both player preferences and regulatory expectations for tighter controls.”
Opportunities for those willing to play tough rules
Further ahead, the market may open up even more. Advertising reform, potentially easing the Decreto Dignità ban, could reshape acquisition strategies. “Advertising reform could significantly boost brand visibility and acquisition, benefiting both operators and suppliers through increased demand,” Papallo argues. “A more open advertising landscape will drive innovation and competition across the entire ecosystem and make players more aware of regulated operators.”
And while land-based reforms remain in limbo, convergence is on the horizon. “It’s true that, for now, the two types of licences operate on separate tracks, but the intention is to bring them closer together and enable operators to offer an omnichannel product,” he says.
For Papallo, Italy’s overhaul is a reset, one that rewards those who can combine innovation with compliance discipline. The rules may be tougher, but it is evident that there are many opportunities for those ready to play by them.
