Italy to begin testing period for virtual sports

Italian regulator AAMS has announced it is to launch of a trial period for virtual sports in order to formulate a regulatory framework for the product, in draft legislation published today.

The aim of the 18-month trial is to allow it to set out minimum requirements, technical specifications and operating modes for virtual sports platforms, and work out how AAMS can best create a reporting network for operators to provide it with information on amounts wagered and turnover from the products.

The product will be taxed on 20% of net gaming revenues with a payout rate of 80 to 90% on single bets, and 60 to 90% on multiples. Legislation initially covers fixed-odds betting, though AAMS will release specific regulation on parimutuel betting on virtual sports in due course.

Virtual sports becomes the latest product to be licensed by the Italian authorities as it aims to boost tax revenues from the country’s online gambling sector ““ a drive which has seen AAMS director general Raffaele Ferrara resign, and will see the regulator merged with L’Agenzia delle Dogane (Customs Authority) to form the Customs and Monopolies Authority. It follows the opening of the licensing process for online slots, which was announced early last month, and last year’s launch of cash poker and casino.

This is almost certain to be followed by the launch of exchange betting in the market after the European Commission ratified Italy’s exchange betting decree in May. The ministerial decree has now returned to the country’s government for further comment, and is likely to be passed into law within three to five months.

After a poor start to 2012, with sports and horse betting revenues cannibalised by the newly-licensed poker and casino products and damaged by a strike which shut down the country’s horse racing industry for most of January, AAMS reported the strongest month for the year to date in May, with gross gaming revenue up 30% year-on-year.