Mondogoal partners with Intralot for Italy DFS launch
Change in tax regime prompts daily fantasy sports operator to become first to launch in Italian market
Mondogoal has become the first daily fantasy sports (DFS) operator to enter the Italian market after striking a deal with gaming giant Intralot.
The site, Mondogoal.it, will offer real-money contests on Serie A, La Liga, the English Premier League, the FA Cup, and the Champions League, among others.
Mondogoal chief exec Shergul Arshad said he was “eager to take on the new challenge” and after having studied the market for three years believed his firm offered an “exciting and breakthrough” product.
“We bring a rich offering that not only includes Serie A but also the Premier League, La Liga, Ligue 1, the Champions League and many more.
“In my years as head of digital at A.S. Roma, I became very familiar with many important people in the world of football and I think that Intralot is the perfect partner for our ambitions,” he added.
The launch of Mondogoal.it comes just weeks after Italy ushered in a new tax regime which means fantasy sports operators are no longer levied on a turnover basis but at 20% of revenues instead.
“The recent change in taxation has certainly contributed in Mondogoal’s decision to enter into the market,” Giulio Coraggio, head of the gaming practice at law firm DLA Piper, said.
To enter the market, however, newcomers must partner with a licensed Italian operator, acquire a current licence holder, or wait for one of the 120 new online gaming licences expected to be issued later this year.
“I expect that we will see further fantasy sports operators in the Italian market because of the 120 new online gaming licences that will be awarded in 2016,” Coraggio added.
While DFS has taken the US market by storm in recent years, questions remain over whether the activity will be as successful in markets such as Italy where real-money sports betting is legal.
“I believe other DFS operators will enter the Italian market and they might succeed despite the competition from real-money sports betting, especially as a consequence of the new 20% GGR tax regime recently introduced,” Coraggio said.
“It should be considered that in the last years any new product has gained a considerable market share in a short term because of the ‘novelty effect’.
“Therefore if other operators want to exploit such opportunity, they shall not delay the entrance in the market,” he added.