Online Poker Italy Declines By Dramatic Degrees

Posted:October 2012

For some reason it was believed that when online poker came to Italy, it was going to go from strength to strength. However this marketplace has continued to decline by a fairly dramatic level; the Italian state regulator, L’Amministrazione Autonoma dei Monopoli di Stato (AAMS) confirmed. They have released their latest annual report which clearly indicates the extent of the decline. Online poker revenue dropped from a high of €41m in January 2011, by a massive 43% to just over €23m by August 2012.

The press is describing this as a “Collapse” of the industry, and if we examine the fact that online poker tournament revenues are down nearly 75% since the first introductions of regulation, this adds a little more weight to the argument. Comparative figures show us that in January 2011, the high was €35.3m; now in August 2012, the low is €9.1m.

Despite the fact that cash online poker games were introduced about 15 months ago, and proved initially to be fueling a booming industry, even this online form of the game has dropped by 41% for the year.

There are two interrelated issues which seem to be taking the blame:

1. High gaming taxes

2. Low player liquidity

The tax levy introduced by law, substantially escalates entertainment cost with regards to recreational players. It also makes playing poker online unviable as a form of income provision for professional players.

Low player liquidity is dictated by the fact that the only pool from which to draw players is the Italian market. We know this will present problems for states in the USA, so, perhaps they are able to take a page from this book, before making the same mistakes. Spanish and Italian regulators are in discussions about perhaps making moves to initiate a joint player pool from these regions, but at this point in time the argument is political. We know what happens when politics gets involved where they should not be involved at all. The problem is that nothing happens!