Italy is among the countries where gambling and betting are well-developed. The industry is regulated by Agenzia delle dogane e dei Monopoli (ADM). Risky entertainment is allowed in Italy, but the state has banned sponsorships in 2019. This decision aims to decrease the harmful impact of betting activities and minimize the number of individuals suffering from gambling-related disorders.
Such amendments couldn’t but affect Serie A football teams, which previously relied heavily on their sponsors. Lower-division clubs also face numerous disadvantages due to the ADM changes. Let’s explore the impact of the updated gambling and betting regulations on the football teams’ financing and the industry as a whole.
Background for the Ban of Gambling & Betting Advertising and the Role of ADM
The topic of responsible gambling has been widely discussed in the last few years. The higher availability of online gaming and betting increased user demand for this entertainment. Millions of people join online sportsbooks during the anticipated matches and place bets on the chosen football teams. Addiction is the primary industry challenge the government and regulatory authorities have yet to overcome. The research indicates that over 3% of the country’s population is targeted by gambling disorders, and this problem should be considered as soon as possible.
Many users prefer to try their luck on non AAMS betting sites after watching ads promising amazing winnings with a minimum deposit. By definition, betting is risky and can lead to significant losses. Therefore, the ADM decided to ban sponsorships and advertisements, respectively. In such a way, the regulatory body aims to decrease the harmful impact of online sportsbooks on vulnerable populations.
All bookies operating in the Italian jurisdiction must comply with these amendments. On the other hand, overseas platforms outside Italy don’t fall under this requirement and can proceed with ads and sponsorships. The latest regulations significantly influence local football clubs that face a lack of financing and additional income from their partners.
Immediate Impact on Football Teams
Collaborations with betting companies are important for both operators and football teams. Gambling platforms can increase customer engagement, and clubs get more revenue and financing. The recent AMD ban created many disputes in the industry: the FCs’ inability to form partnerships and promote betting negatively impacted their budgets.
Even though the new law aims to reduce the number of gambling-addicted individuals, football teams try to soften the ban and at least allow bookmakers to place their logos in the stadium during matches. However, the request is still discussed, so no changes have been implemented since 2019. Therefore, football clubs must search for other financing sources, including sponsorships with non-gambling companies.
Long-term Effects and Adaptations
Undeniably, football clubs are dissatisfied with the gambling ad bans, as betting companies heavily invested in sports industry development. However, teams and their management had no choice but to adapt to the new regulations. They faced the need to search for other sources of financing and implement new measures to promote football clubs and grow their revenue.
Italian football teams still interact with gambling companies without breaking the country’s legislation. There are no direct gambling advertisements during matches, but bookmakers can still provide special tournaments and exciting events based on a particular team’s performance. Such an approach allows football fans to keep engaged in betting and updated about the latest FC news.
For example, Inter partnered with LeoVegas.News, which is not only about gambling. The company provides users with different entertainment options and the latest novelties from the sports world. Roma FC and StarCasino.Sport is another famous collaboration: the company provides readers with exclusive Serie A content, including team news and match schedules. Football clubs and gambling operators adapted to the new reality: they still interact while complying with Decreto Dignità.
Comparative Analysis
Gambling advertisement is allowed in numerous European countries, providing football clubs with more opportunities to attract attention to their tournaments. Athletes engaged in promotional campaigns with betting operators are like billboards during the match, which also increases the brand’s recognition in the market. Therefore, such an approach benefits the team and its gambling sponsors, as they get more customers and fans.
While this approach is not beneficial for football teams and betting companies, it can still help decrease the number of gambling-addicted individuals within the country. In 2019, around 7% of all users engaged in the industry suffered from compulsive betting. Currently, the figure is around 3%, meaning that the ban brought the desired effect. Therefore, other European countries may consider Italian regulations but make them less strict to satisfy all parties involved.
The Broader Impact on Italian Football:
Broadcasting opportunities are another issue Italian bookmakers lose with the latest advertisement ban. Local bookmakers are not allowed to proceed with match streaming, affecting customer engagement on the platform. In this case, Series A teams lack financing from potential investors and are less attractive due to lower fan retention. Softening Decreto Dignità is still under negotiation, so Italian football clubs hope for further advancements to continue engaging in gambling partnerships legally.
Final Insight
The ban on gambling ads integrated into football matches significantly influenced betting companies and Series A clubs. Both faced negative influence: while teams lack financing and get lower revenues, sportsbooks lose potential customers. On the other hand, the latest amendment was beneficial in terms of reducing harmful gambling impacts on vulnerable populations. All in all, football clubs still find ways to interact with bookies in the form of common entertainment options and activities connected with the anticipated matches. Such an approach allows both parties to promote each other without breaking the law.
