Italian Media Regulator Imposes $1.5M Fine on X Over Gambling Ads

Italian media watchdog, Autorità per le Garanzie nelle Comunicazioni (AGCOM), has levied its first fine of €1.35 million ($1.5 million) against X (Formerly Twitter) for violating regulations regarding gambling advertisements. 

X Faces Penalty for Breaching Italy’s Dignity Decree

The sanction stems from the breach of the prohibition on advertising gambling with monetary winnings or games of chance, as outlined in Italy’s Dignity Decree, reported Italian media outlet Il Sole 24 Ore. According to reports, nine accounts on the X platform were found to have violated this law, each adorned with the coveted blue checkmark indicating verified status.

The decision was reached during a session on March 6, 2024, as disclosed in a press release by AGCOM on March 12. 

Agcom revealed that while seven of the offending accounts had already been blocked by the platform, two accounts remained active, prompting the regulator to issue a blocking order for them.

Italy’s Dignity Decree, enacted in 2018, prohibits all forms of gambling advertising across various mediums, including television, radio, print media, billboards, the internet, and social media platforms.

Latest AGCOM Fines Highlight Struggle Against Gambling Ads

This marks the fourth instance in as many years where AGCOM has imposed fines under this legislation. Previously, in October 2020, Google faced a €100,000 ($109,405) fine for displaying a paid search ad from the now-defunct website sublime-casino.com. 

In August 2022, Google incurred a €750,000 ($820,571) fine for publishing gambling advertisements promoting the operator Spike on YouTube. 

More recently, in December 2023, AGCOM fined YouTube and Twitch a total of €3.15 million ($3.42 million) over the presence of 20,000 gambling-related videos on their platforms, violating Italy’s strict gambling advertisement ban. 

AGCOM alleged that these platforms partnered with content creators who promoted unauthorized gambling content, including sports, poker, and casino ads across 80 channels. Despite hefty fines, the effectiveness of the ban in curbing problem gambling remains uncertain, and both companies are expected to appeal the decision, with a good chance of success.

AGCOM’s actions highlight the increasing scrutiny on digital platforms regarding compliance with regulations, particularly concerning sensitive issues like gambling. The fines reflect a concerted effort to uphold consumer protection and combat the adverse effects of gambling addiction.

At the same time, Italy‘s 2024 gambling sector reform, spearheaded by the Ministry of the Economy and Finance, aims to enhance player protection and boost tax revenues. However, contentious licensing fee hikes and operational charges have sparked opposition from operators, who argue that the changes could disproportionately impact smaller businesses, despite government assurances of economic benefits and improved safety measures.