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The Italian gaming market in 2022 was valued at US$22.98 billion. The market value is expected to reach US$31.46 billion by 2028. Gaming refers to the act of participating in various games of chance, where players place bets or wagers on uncertain outcomes with the hope of winning additional money or prizes. This form of gaming is commonly associated with casinos, betting shops, online gambling platforms, and other gambling establishments. The Italian gaming market appears to be benefitting from strong underlying growth within the online segment. Moreover, introduction of new gaming verticals and innovation would further drive the market growth.
Italy has a mature gaming market as compared to its other counterparts. In terms of gaming regulation, Italy has been one of the most active countries in Europe. The Italian model amounts to a concession-based environment and one that is open to national and foreign operators through public tender procedures. On the other hand, the regulator, the Italian Customs and Monopolies Agency (ADM), is the guarantor of the industry's legality and security, and its efforts have made Italy a virtuous example in the fight against illegal and irregular gaming operators. Therefore, owing to the favorable regulations, the Italian gaming market has been experiencing growth in the past few years. The market is expected to grow at a CAGR of approx. 5% during the forecasted period of 2023-2028.
Market Segmentation Analysis:
By Type: The report provides the bifurcation of the market into four types: Retail Gaming, Lotteries, Casino & Bingo, Online, and Retail Sports. The retail gaming segment held the highest share of the market, whereas online gaming is expected to be the fastest-growing segment in the forecasted period. The performance of the retail gaming market in Italy would be influenced by tourism and travel trends. The presence of international tourists and visitors is expected to drive foot traffic to brick-and-mortar casinos and gaming establishments in the forthcoming years. On the other hand, online platforms can offer a wide variety of gaming options, including casino games, sports betting, eSports, virtual reality gaming, and more. This diversity can cater to different interests and preferences, attracting a broader spectrum of players.
By Online Type: The Italian online gaming market can be divided into three segments based on the type: iGaming, iSports, and Other. iGaming held the highest share in the market and is expected to be the fastest-growing segment in the forecasted period. iGaming allows players to participate in gaming activities from the comfort of their homes or on-the-go through computers, smartphones, tablets, and other internet-enabled devices. The advancement of internet technologies, increased internet penetration, and the proliferation of smartphones have made online gaming more accessible to a wider audience. On the other hand, esports has seen tremendous growth in recent years, with large-scale tournaments, professional leagues, and a dedicated fan base. The popularity of esports has contributed to the overall growth of the iSports market.
Market Dynamics:
Growth Drivers: The Italy gaming market growth is predicted to be supported by numerous growth drivers such as acceleration in online penetration rate, high propensity to spend on gaming, increasing smartphones penetration rate, increasing gaming tax income, and supportive government reforms, fully exposed to multi-concession gaming verticals, favorable regulatory measures, and many other factors. Taxation and revenue sharing policies can play a significant role in supporting the growth of the Italian gaming market. Revenue sharing policies can facilitate investments in essential infrastructure related to the gaming industry. This includes modernization of gaming facilities, technological upgrades, and the development of online platforms. Improved infrastructure can enhance the overall gaming experience, attract more customers, and foster market growth.
Challenges: However, the market growth would be negatively impacted by various challenges such as competition from unlicensed operators, economic and socio-political factors, etc.
Trends: The market is projected to grow at a fast pace during the forecast period, due to various latest trends such as growing virtual reality (VR) and augmented reality (AR) gaming, increasing popularity of esports, personalization and gamification, integration of cryptocurrency in gaming, etc. Esports has a strong appeal to the younger demographic, including millennials and Gen Z. By embracing esports and providing platforms for competitive gaming, operators can attract and retain younger players who may not be as interested in traditional forms of gambling. Also, esports events and tournaments attract a significant number of viewers both online and in-person. This popularity has made esports an attractive platform for sponsorship and advertising.
Impact Analysis of COVID-19 and Way Forward:
The Italian gaming market experienced negative growth during the pandemic. To control the spread of the virus, Italy implemented strict lockdown measures, leading to the temporary closure of land-based gaming establishments, including casinos, betting shops, and gaming halls. This closure resulted in a significant loss of revenue for the industry. On the other hand, with the closure of physical gaming venues, there was a noticeable surge in online gaming activity. However, the pandemic spurred interest in virtual reality (VR) and augmented reality (AR) gaming experiences. Post-COVID-19, these technologies may gain further traction as gaming companies explore immersive and interactive gaming options.
Competitive Landscape:
The Italian gaming market is competitive in nature, implying ongoing market share risk from existing competition as well as potential new entrants. Competition may also intensify due to further sector consolidation. The key players in the Italian gaming market are:
Lottomatica Group
Playtech Plc (Snaitech)
International Game Technology Plc. (IGT)
Betsson AB (StarCasino)
Super Group Limited (Betway)
Novomatic AG
Kindred Group Plc
Flutter Entertainment Plc (Sisal)
888 Holdings (888sport)
Entain Plc.
SKS365 Group (Planetwin365)
Some of the strategies among key players in the market are mergers, acquisitions, and collaborations. For instance, in 2022, Lottomatica Group acquired Betflag. Whereas, in 2021, Flutter Entertainment acquired Sisal. Entain has been investing heavily in marketing and advertising in Italy. The company has partnered with several high-profile Italian sports teams, including Inter Milan. This has helped to raise awareness of Entain's brands in Italy, and it has also helped to drive growth in the company's sports betting and gaming businesses. Lottomatica is the national leader in Italy's retail gaming segment. Lottomatica is constantly introducing new games and formats to the company's retail gaming portfolio. This helps to keep the games fresh and exciting for players, and it also helps to attract new players to the market. Also, Lottomatica manages gaming halls throughout Italy with distinctive and recognizable brands. This allows Lottomatica to offer a physical presence in addition to the company's online offerings, potentially attracting a wider range of customers.