This article had been published in Italian on LexGiochi on December 3rd, 2013. See the full article in Italian here:
https://www.egla.eu/w/portfolio-view/storia-ed-attualita-del-gioco-a-distanza-italiano/#sthash.YCDREODg.dpbs
4. The trend in remote gambling and the current situation
Spending on legal remote gambling amounted to € 310 million in 2008 and grew to € 608 million in 2009 following the introduction of tournament poker. Subsequently, the growth rate reduced steadily, despite the introduction of major new games. In 2010, the year on which remote bingo was launched, spending was equal to € 690 million, an increase of 14%. In 2011 spending was equal to € 735 million, an increase of 6.6%. This latter however hides a drop when you consider that in mid-2011 poker cash and casino games were introduced, thus recouping considerable amounts from the illegal market. Finally, in 2012 spending was equal to € 749 million, an increase of 1.9%, which masks a even more pronounced drop if you take into account the fact that casino games and poker cash impacted the 2011 figure for only six months and that in December 2012 online slot games were introduced also .
So, spending on legal remote gambling has grown significantly since 2008 as a result of the progressive introduction of new games and has always been accompanied by the channelling of illegal gambling into the legal circuit. To ensure correct calculation of spending (i.e. the income amount taken from other consumer expenditures) and its trend, the result of both legal and illegal gambling activities should always be considered.
With regard to the current situation, a comparison of the first quarter of 2013 with the first quarter of 2012 shows a 0.2% decline, according to official ADM data, despite the introduction of slot machine games in December 2012. Although the ADM has not produced official figures for the second and third quarters of 2013, estimates based on data from reliable sources indicate a fall of around 2% – 3% over the same period last year. Online poker in particular reduced by 35% in the first nine months of 2013 over the same period 2012 . It is believed that during the first months of 2013 there has been a significant fall of illegal remote gambling, because of migration of players to legal websites following the introduction of legal online slots. There then followed substantial stability in following months, even if the current very hostile climate towards gambling may have pushed marginal sectors of the offer to consider illegal gambling as a profitable alternative to the legal business, providing incremental flows to the former.
In conclusion, we must refute the belief that credits remote gambling with relentless growth in Italy. 2010 has presumably been the year of maximum development of remote gambling, given the volume of both the legal and illegal markets. From 2011 there has been a progressive decline of the total remote gambling market, legal and illegal, also because of the economic crisis, although it would be logical to expect development, assisted by widespread use of the Internet and the increase in device performance. The trend is in contrast to the limited growth rate of Internet use by the Italian adult population.
The € 749 million of spending accounted for by online gambling in 2012 is only 4.4% of total gambling spending in Italy, which is equal to € 17.1 billion. On the basis of our estimation , that share slightly drops in 2013. There is a general perception, probably because of the role that the media and television necessarily play in the marketing of remote gambling and more generally by the grasp this phenomenon has on the people imagination, that online gambling has a much larger share of the gambling total market than is actually the case. Spending on Italian legal online gambling is comparable with that allotted to other sectors of entertainment, e.g. cinema going, and is noticeably lower than expenditure for videogames .
Spending on remote gambling is limited even in comparison with Europe. While it is true that in general, gambling in Italy has reached higher levels than in other EU countries, the spread of online gambling is lower than the European average instead. In this regard the situations in the southern and Latin markets, including France and Spain, which recently introduced their own national gambling legislation and which show remote gambling propensities similar to Italy, appear noticeably different compared to the Nordic markets, where per capita spending on online gambling is even 3 or 4 times that of the Italians .
5. Remote gambling per player spending
The Observatory of the Politecnico di Milano, which conducts annual research based on analytical data provided by the ADM shows, with reference to 2012, that the number of unique players in the month (the number of different players in each month counted only once, regardless of the number of gambling sessions played) adds up to 797,000, or 2.9% of adult Internet users. Further 563,000 players, despite not having played in the month under examination, had played in one of the previous 5 months. Another 1.45 million people owning a gambling account had been “silent” players for over 6 months. Obviously they should not be defined as “gamblers”. They would probably be astonished to be defined like that.
The vast majority of account holders spend limited amounts on gambling. 78% of unique player in the month spend less than 100 euros in the month. The average monthly expenditure per unique player in the month is less then 50 euros. The figures refer to the consolidated amounts spent on all gambling accounts that might be used by the player, held by different concessionaires.
6. Online problem gamblers
Some research on problem gambling seems to indicate higher prevalence rates in online gambling compared to gambling in general, and this has contributed to establishing a dangerous image for remote gambling. In contrast to this widespread belief, the results of the British Gambling Prevalence Survey 2010 held by the British Gambling Commission show that the majority of online players are actually “also” online players, i.e. they play both online and offline.
The research confirms that the rate of problem gambling is higher in those who play many different games, on many media and in different ways.
In contrast, the prevalence rate of problem gamblers who play only online is very low. It is actually zero in the case of the specific research mentioned, however the data suffers from limited statistical significance in relation to the low specific sample size .
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[13] Data reported is calculated directly on the basis of data made available on the monthly reports published by the Remote Gambling Office of the ADM.
[14] Based on research activity of the author.
[15] Share calculated on the basis of data provided by the ADM.
[16] Based on the integration of information collected directly from the gambling operators, press reports and the ADM itself.
[17] It is essential that advertising be strictly regulated, as is actually happening, through the rules introduced by the so called “Balduzzi” Decree law 13 September 2012, No. 158, converted with modifications and integrations by Law 8 November 2012, No. 189, and future ones that should be provided in compliance with draft law of delegation on taxation currently under discussion by the Chamber, as well as it is also happening through the active contributions of the Associations of Concessionaires adhering to the Federation Sviluppo Gioco Italia belonging to Confindustria. The above-mentioned Associations are self-regulated through the “Code and Principles of Conduct of communication concerning games with cash winnings”, approved in June 2012, and included as Article 28-ter since 31 December 2012 in the 56th edition of the “Code of Conduct of Business Communication” of the IAP (the advertising self-regulating body). Federation Sviluppo Gioco Italia is now preparing further guidelines to encourage more rigorous and uniform conduct by operators. Advertising is however indispensable for the protection of the consumer, so that they can recognise and distinguish the safe, legal offer from the illegal offer. Therefore any prevalence of calls for its prohibition would ultimately favour the illegal gambling industry and compromise the proper information, awareness and ultimately, the safety of the citizen.
[18] On the basis of the data shown on the report published by the Observatory of Remote Gambling of the Politecnico di Milano “Il Gioco Online in Italia: Un Mercato già maturo?”.
[19] Estimate reported is based on data published by H2 Gambling Capital (market research company in the gambling industry) to which the European Commission also refers in its communication dated 23 October 2012 “Towards a comprehensive European framework for online gambling” to the European Parliament, the Council, the Economic and Social Committee and to the Committee of the Regions. Furthermore, regarding the UK we refer directly to data reported in the Report Industry Statistic April 2009 to March 2012 published by the Gambling Commission and in the Annual Report and Account 2010 – 2011 published by the National Lottery Commission and, regarding Denmark, to data reported in the Annual Report 2012 published by the Danish Gambling Authority.
[20] Data reported in the paragraph is taken from reports published by the Observatory of Remote Gambling of the Politecnico di Milano, regarding analysis conducted on behalf of the ADM using the data base provided by the ADM itself, and in particular from: “Il Gioco Online in Italia: Un Mercato già maturo?” April 2013 and “Osservatorio Gioco Online – Workshop di Kickoff” issue 2013/2014.
[21] See G. Carboni, Measures of prevalence of online problem gambling, LexGiochi, 5 September 2012.
