Ahead of the upcoming licensing framework in 2025, the igaming landscape in Italy undergoes a transience period. Arcangelo Lonoce, Head of Business Development at Habanero, provides his thoughts on where the region currently stands, how suppliers can prepare for these regulatory changes and how to remain competitive amidst uncertainty.
To begin, could you talk us through where one of Europe’s largest markets stands in 2024, and more specifically, Habanero’s current position within the country?
Italy is a critical market for Habanero, ranking as our second largest globally. We first entered the market seven years ago and gone on to witness tremendous growth. Since gaining traction, we’ve tailored our approach to cater specifically to the jurisdiction, even appointing one dedicated senior account manager to better serve our partners.
In 2024, the Italian market will continue to grow steadily, with a notable shift from traditional retail gaming to online platforms. Despite this transition, retail gaming culture remains integral to understanding local players. Habanero has been successful by blending conventional elements with modern mechanics, delivering products that resonate deeply with the local audience. As our flagship market, Habanero will always be greatly invested in Italy and look forward to continuing to nurture partnerships in the region.
Despite being one of the continent’s most established territories for gaming, where does Habanero still see opportunities for growth? And how will these be capitalised on?
Opportunities for growth in the country are vast, as the demand for new and exciting games remains insatiable. Italian players are highly curious and come from a deeply rooted retail culture. We’ve observed continuous growth in the number of players transitioning to online gaming, with many now preferring the more dynamic gaming experience that igaming offers.
One area where we believe we will see significant developments is in being able to offer a multi-channel experience, bridging retail and online platforms. Additionally, with the new licensing legislation set to reshape the market in 2025, we are well-positioned to capitalise on these changes. As a young company, agility is ingrained in our very core and whatever challenges the market throws at us, we are prepared to adapt.
Like many other territories, Italy isn’t immune to regulatory alterations. How would you say the industry has responded? How do you maintain brand strength within the country?
The industry has shown remarkable resilience and maturity in responding to regulatory changes over the past several years. The advertising ban, for instance, posed a challenge, but the market adapted by finding innovative ways to promote brands without violating regulations. Companies like ours have been able to maintain brand visibility through strategic partnerships and creative brand placements.
Despite these hurdles, the industry has continued to grow, and stakeholders have turned challenges into opportunities. The upcoming licensing changes in 2025 present another regulatory shift, but we remain confident that the market will navigate these challenges as it has done in the past. At Habanero, we’ve worked closely with our partners to maintain a strong presence in Italy by delivering culturally relevant games, like Scopa, which tap into Italian gaming heritage.
What would you pinpoint as some of the major challenges being faced within the Italian online gaming ecosystem? How do you compete against such intense competition? How much of an issue is the black market?
The biggest challenge we’ve faced so far has been the advertising ban, which has impacted how brands can communicate with customers. Another challenge is the lengthy and complex regulatory approval process for releasing new games in Italy, which can delay product launches. This makes it difficult for suppliers and operators to plan and execute product roadmaps efficiently.
Competition is fierce in Italy, with larger suppliers dominating the market. However, Habanero stands out by offering exceptional, bespoke products and maintaining agility that many larger competitors lack. Our success comes from consistently delivering high-quality games and impeccable support, both technically and commercially.
The black market is another significant issue, albeit one that isn’t just limited to Italy, and has been exacerbated by the advertising ban. Licensed operators are restricted in their advertising efforts, while black market entities don’t bother with these constraints.
This imbalance makes it harder for legitimate operators to compete, and the black market has grown, particularly during the COVID-19 lockdown. Addressing this issue requires a more cooperative approach between the government, regulators, and industry stakeholders.
How do you see the Italian market playing out through the remainder of the year and beyond? How will Habanero continue to ensure consistent growth?
The past two years have been years of consolidation, although the market still shows positive signs of growth. This opens us up to create bespoke partnerships with key players in the market and being able to stay afloat in a more competitive environment because everybody will be fighting for a place in the sun.
We’re evolving beyond simply being a game supplier by offering comprehensive solutions that support our partners in navigating the changing landscape. While we can’t disclose all our upcoming projects, it will become clear in the coming months that Habanero is committed to helping our clients remain competitive and grow in this dynamic market beyond mere slot provision.
