Microgame CEO says Italy’s online gaming reform is driving market consolidation

Marco Castaldo, chief executive of Microgame, said at the SiGMA Central Europe Summit in Rome on 3 November that Italy's online gaming reform is accelerating market consolidation. He said the market is increasingly in the hands of large groups. According to Castaldo, the previously fragmented part of the market is now struggling to find an identity.

Castaldo said that, as the system is built, a significant share of the investment costs of adapting to the new technical rules falls on suppliers. He said Microgame is absorbing development costs that it cannot fully pass on to its clients. Castaldo said the complexity of certification procedures could prevent operators from making their entire product catalogue available on time. He said he hopes the certification system will be simplified.

The new technical rules are due to apply from 15 February 2027. Castaldo said the full effects of the reform are not yet visible and that further consequences are likely to follow from that date.

Castaldo criticised the ban on cash withdrawals through the network of top-up points of sale (PVR). He said he sees a return of illegal activity, both through .com sites and through intermediation on licensed .it operators. He also praised the circular issued by the customs and monopolies agency ADM on traced top-ups. On the future of the PVR segment, he said it is in difficulty but that it is too early to know what will happen.

Microgame operates mainly in the B2B market and also has a stake in a licensed operator. Castaldo said Microgame has been shifting its focus towards large groups for at least a couple of years, including through its software division. He said he believes Microgame's own case is an exception.