The Italian authority for communications guarantees, Autorità per le Garanzie nelle Comunicazioni (AGCOM), has issued its inaugural fine of €1.35 million ($1.5 million) to the company formerly known as Twitter, hereafter referred to as ‘X’. The fine was imposed as a result of X’s violation of laws concerning the advertisement of gambling.
X Hit with Fines for Violating Italy’s Dignity Decree
The imposed penalty originates from the contravention of the ban on advertising gambling activities that involve monetary gain or are based on chance. This prohibition is clearly defined by the Italy’s Dignity Decree, according to news shared by the Italian media entity, Il Sole 24 Ore. Investigations revealed that nine verified profiles on X’s platform had contravened these regulations.
The verdict was reached during a meeting held on March 6, 2024, with the public disclosure made by AGCOM on March 12 of the same year.
In its public statement, AGCOM communicated that seven of the infringing accounts had been suspended by the platform, whilst two of the accounts continued to operate. In response to this, AGCOM issued commands for these remaining rogue accounts to be blocked.
The groundbreaking Italy’s Dignity Decree, passed in 2018, enforced a ban on all types of gambling advertisements across a plethora of platforms. This includes but is not limited to television, radio, print and digital media, billboards, and social media platforms.
The settlement of this lawsuit against X represents the fourth consecutive year that AGCOM has issued fines under this law. In October 2020, technology heavyweight Google was hit by a fine of €100,000 ($109,405) for displaying a paid search advertisement from the now non-existing website, sublime-casino.com.
Again, in August of 2022, Google faced a brunt fine of €750,000 ($820,571) for promoting the operator Spike through gambling advertisements on YouTube.
Most recently, in December 2023, streaming platforms YouTube and Twitch were collectively fined €3.15 million ($3.42 million) by AGCOM for having 20,000 gambling-related videos on their platforms, which is a clear violation of Italy’s stringent regulations on gambling advertisements.
AGCOM has condemned these platforms for joining forces with content creators to promote unauthorized gambling activities, including adverts for sports, poker, and casino games across 80 channels. Despite the substantial penalties, the effectiveness of the ban in terms of reducing problem gambling is yet unclear. Both platforms may challenge the decision with a plausible probability of success.
The actions taken by AGCOM spotlight the increasing scrutiny placed on digital platforms to ensure full compliance with regulatory standards, especially those related to gambling. The strong financial penalties are indicative of a combined effort to maintain consumer safety and address the harmful implications of gambling addiction.
In light of recent developments, Italy is set to reform its gambling sector in 2024, guided by the Ministry of the Economy and Finance. The intention is to strengthen player protection and increase tax revenues. However, the proposed controversial licensing fee increases and operation costs have elicited resistance from operators. These stakeholders argue that the modifications could overwhelmingly affect smaller businesses, regardless of the government’s assurance of economic advantages and enhanced safety controls.
