The game in Italy: between legality and illegality

Today, at Villa Blanc, the First Research Report on the Gaming Sector in Italy was presented. It's the result of a collaboration between the Luiss Business School and Ipsos, and was produced with support from the Customs and Monopolies Agency.

The study aims to analyze the phenomenon of gaming, with a focus on the Italian context, to understand the sector’s dynamics, player behavior, and the risks associated with the development of illegal channels. 
Gaming is a full-fledged industry, and not just in Italy. It involves a large number of people, including players and workers, and draws significant attention from public authorities. The sector has also taken on considerable economic value, meaning it generates income, employment, and resources for public finances.

During the first part of the event, Prof. Alberto Petrucci, Full Professor of Political Economy at Luiss Guido Carli, and Dr. Ilaria Ugenti, Corporate Reputation Leader at Ipsos, discussed this topic. They were introduced by Prof. Matteo Giuliano Caroli, Head of Applied Research at Luiss Business School.

The meeting was also attended by Prof. Marcello Minenna, Director General of the Customs and Monopolies Agency, and Prof. Livia Pomodoro, Chair of the Project’s Advisory Board—the steering committee tasked with interacting with the project team to discuss and interpret the objectives and implications of the research results. The first session of the proceedings concluded with a speech by the Honorable Claudio Durigon, Undersecretary of State at the Ministry of Economy and Finance. 

Among the report’s key findings, the importance of data on the pandemic’s impact is worth noting. While in 2018 the “Activities related to lotteries, betting, and casinos” sector overall had 9,265 businesses, 42,818 employees, a total turnover of over 15 billion euros, and an added value of over 3 billion euros, in 2020, despite the growth of online gaming, overall spending fell by 33.5%. Furthermore, in the physical gaming sector, which was hardest hit by the fallout from COVID-19, spending dropped by 41.7%, with a clear shift towards illegal channels. As a result, in 2020, tax revenue from gaming recorded its lowest share of total tax revenue since 2006.  
 
The event continued with a roundtable discussion moderated by RAI journalist Serena Bortone. The participants included Prof. Raffaele Oriani, Scientific Coordinator of the Research Project on the Gaming Sector and Associate Dean at Luiss Business School; Prof. Nando Pagnoncelli, President of Ipsos Italia; Dr. Federico Cafiero De Raho, National Anti-Mafia Prosecutor; and Prof. Emanuela Randon, Faculty Member in the Department of Economics at the University of Bologna. They presented the research and the data that emerged.
 
As the study's lead, Prof. Raffaele Oriani, Associate Dean of Luiss Business School, emphasized: “Our research presents an analytical and systematic snapshot of the sector. The findings and results of this work could provide a solid scientific foundation for any future discussions on regulating the industry and ensuring its balanced, sustainable development.”
 
In fact, the study reveals that 67.7% of the adult Italian population, or 31,350,000 individuals, engaged in some form of gambling in 2020. However, it is estimated that around 4.4 million players are engaged in illegal channels. This represents a complex universe that includes individuals with varying attitudes and inclinations, but with more defined sociodemographic characteristics. In fact, they are predominantly men (71%), on average younger than the overall player population, and more likely to reside in the South and the Islands. 
 
Individuals who gamble in illegal channels are not on the fringes of society; rather, they are integrated into the social fabric, with 72% employed and 14% enjoying an above-average standard of living. Many players view illegal gambling with a degree of leniency: only two out of three Italians believe they could run into legal trouble, a figure that drops to one in two among those who gamble through illegal channels. However, this tolerance for illegal behavior seems to clash with the general perception of illegal gambling, which is considered a serious problem by 86% of Italians and even by 69% of those who gamble through illegal channels.
 
Finally, the presentation served as an opportunity to announce the Memorandum of Understanding signed by Luiss and the Customs and Monopolies Agency. This agreement aims to strengthen their mutual collaboration on study and research projects related to the gaming sector, building on the work of the Observatory on Regulated Markets. The goal is to ensure the protection of customers and operators, curb the spread of unauthorized channels, and safeguard a market that has become essential to the economy. 

“The study highlights several dynamics that deserve the attention of those tasked with reflecting on the future of legal gambling,” said Nando Pagnoncelli, President of Ipsos. “We identified more than 4 million players in illegal channels who, contrary to popular belief, are not marginalized individuals but are fully integrated into civic and social life.” Another phenomenon that warrants attention is unintentional legal gambling, practiced by those who don't fully grasp the line between legality and illegality. We observe this phenomenon both online and offline. A more effective communication strategy seems necessary to bring this segment of players out of the illegal market.”