The italian gaming sector

Lottomatica is the leader of the Italian regulated gaming market. The gaming sector is complex and strictly regulated and public functions within the field of public gaming include regulatory and supervisory activities, both of which are exercised by the Customs and Monopoly Agency. The legal framework of the gaming sector covers different areas regarding legality and public safety (in particular anti-money laundering regulation); the protection of consumers, public health, and minors, and general aspects of pathological gambling prevention.

In addition to national laws, further regulation is provided at local level, where each region can introduce specific territorial laws about, for example advertising or providing distance requirements from "sensitive" locations, and limiting opening hours for points of sale.

Moreover, characteristics and distribution of gaming points of sale haves been defined in the agreement between national State and local authorities within the Conferenza Unificata in September 2017 (currently under implementation).

Market performance

In 2016, 21.9 million people have played one of the game of the public regulated offer. This number is down slightly compared to the previous year, and accounts for 44.6% of the total population age 18 and over (GFK Eurisko, Games Observatory, 2017). The wagers which means the sum of players’ bets, totaled approximately €collection, or the total number of players' bets, totaled approximately € 96 billion, and total expense (GGY) amounted to € 19 billion and State income was above € 10 billion ( increased by € 2 billion compared to 2015).

In 2016, approximately 80% of wagers was returned to players as winnings, while the remaining 20% reflected player expense.
The turnover of the industry was € 9 billion. That amount is then distributed to various figures in the sector represented by the commercial network (points of sale, bars, tobacconists, betting shops, gaming halls, etc.). State concessionaires for public gaming services (lotteries, sport and horse betting, gaming machines, interactive, bingo, etc.), machine operators.

Gaming in Italy interests all classes. This is why the average player's profile resembles that of the general population by age classes and distribution across the country, although men show a greater propensity to play than women.

As far as services are concerned, where in recent years there have been new competitors entering, Lottomatica has a significant position in three areas. In 2016, Lottomatica Italia Servizi (LIS), also through its subsidiaries, maintained a market share near 27% in commercial services, in non-domiciled payments, exceeding 38%, considering the external market to Poste Italiane, and a 5% market share in prepaid cards.