The main news in Italy over the past year has been the introduction of VLTs into the country. The licensed betting industry was overhauled and then licences were issued for Italy’s first VLT network.

These machines will be known as Comma 6b (AWPs are Comma 6a). The maximum stake is ten Euros and customers will be able to use cash, tickets or smart cards from January 2011. At least 85 percent of stakes must be returned to players, while the maximum payout on a single game is 1500 Euro, although larger jackpots are allowed. They can reach 15,000 Euro if competed for on a single premises, or 50,000 Euro if they cover an operator’s entire network. However, no more than two percent of stakes can go toward a jackpot. The stake and payout rules will be reviewed in January 2011.

Video Lottery Terminals will offer a number of different types of games through a remote server. It is widely believed that this latest move from the government comes as a response to the massive costs of rebuilding parts of the Abruzzo region in Italy, following the earthquake there last year – certainly the one billion Euros it has netted the government should go some way to help.

As for the opportunities for suppliers, they are huge. “According to analysts, the Italian market is expected to grow by 64% to Euro 61 billion (turnover) by 2010 as legalisation around gaming is reformed,” says Marzia Turrini - Head of Business Development & Marketing at BetStone.

The question being asked in the industry now is whether the popularity of the new VLTs will have a negative impact on the rest of the Italian industry. The category most obviously under threat is slots. Slots are bigger than ever in Italy. 53.5bn Euro was spent on gaming in Italy in 2009, 24bn Euro of it in the country’s 400,000 slots. The Italian research body Censis says the total market is growing at 15 percent a year, and that a full five percent of family budgets is spent on gaming.

VLTs will have a maximum payout ranging from 1500 to 50,000 Euro, compared to slots with 100 Euro jackpots or 100,000 Euro progressive jackpots.

Vitaliano Casalone, chairman of concessionaire Gamenet said, “I do not share operators’ alarm for the arrival of Video Lotteries. It will be necessary to increase our knowledge and expertise to adapt to suit new responsibilities, but in my opinion “hall managers” coincide with the current managers, even if we shall have a reduced activity chain.”

SNAI chairman Maurizio Ughi is less convinced: “The figure of the traditional owner will no longer exist in the Video Lottery sector - that will become the job of the concessionaire. We shall also have halls along the lines of mini casinos. If current owners/managers manage to unite and acquire a concession, they will retain their role.”

And its not only the VLTs that are signalling a change in gaming focus in Italy. New legislation for online gaming will see 200 new on-shore enterprises approved this Spring. There is also talk of Italy licensing up to 15 new casinos – up from the existing four.

Competition for the Italians’ gambling spend will not only come from legal quarters. There is a thriving grey market in Italy in dedicated PCs in arcades and bars used for online gaming, called Totems, which the government is threatening to crack down on.

Still, this is not really going to make much of an impression on the 57,000 new VLT machines that are going to make their debut in Italy over the next few months. Certainly, the atmosphere at the recent Enada Spring show in Rimini was upbeat. Show organiser Gabriella Zoni said the introduction of Comma 6b had “raised optimism” in the industry.

Of course, we will have to see whether this optimism is justified. It is estimated that the VLT sector will be fully operational by next year. But there are an incredible number of games that will need to be approved by the time that can be achieved. And we all know that the Italian certification process is not known for its speed.

However, there was certainly a buzz around the show as large orders have been taken for VLTs from those operators who won the government licences. And the knock-on effect of this was felt all the way down the supply chain. For example Eurocoin, the international components and cash handling experts have already reported strong sales for VLT printers and tickets. The Epic 950 gaming printer is expected to accompany many of the first VLT installations.

Sales Director Colin Veitch said at the show: “Eurocoin has been extensively involved since 2009 with all the key Italian and international players in this new business model. This has allowed us to secure multiple product line sales to both manufacturers and operators in this important emerging sector.”

It will be interesting to see whether the investment in the Italian gaming market will have a knock-on effect on the amusement sector – which remains one of the strongest in Europe. The only fly in the ointment for many wishing to sell video games into Italy has been the tortuous approval process which has required manufacturers to supply source codes and attend endless meetings in order to be licensed.

Finally, it appears that this system is to be overhauled and improved. The approval body – the AAMS – currently outsources the certification of amusement machines to its six companies: GLI, Nmi, Certin, Quinel, Sgs, Siz and Applus. They are all expected to sign up to the amendments to the system over the next few months.

The changes are due in part to pressure from the European Commission, which found that the certification procedures were so onerous that they limited the “free circulation” of goods and services in the EU. The EC sent a letter of complaint to the Italian Ministry of Finance in September 2009 criticising the system – and this has provided the basis of the new approval process.

So, it could be that the Italian gaming industry will become a leading light in Europe – massively deregulating its sports betting, online and VLT sectors as well as promising further concessions to the casino industry and a welcome respite to those hoping to licence video games in the country.

In fact, in a rare occurrence for the Italian market – almost everyone seems to be happy – even the beleagured bingo sector. After years of crisis, Bingo is now beginning to see the light again and the sector’s figures are rising, thanks above all to taxes being halved, which has enabled the sector to turn itself around.

It seems that bingo will also benefit from the introduction of the VLTs. Bingo halls are in fact the ideal location for VLTs since, as well as being halls in which games are held, they also offer food service and meeting facilities. The figures are impressive: Antonio Porsia, chairman of the HBG Group points out, “If all the bingo halls were to use every one of the 150 VLTs that each could install, in Italy we would have something like 25,000 to 30,000 VLTs, which means an extraordinary opportunity for attracting new clients.”

Size Size of industry

Number of amusement with prize machines: 360,000 (authorized) – 330,000 installed

Machines per sites: Coffee shop, pub and restaurant: from 1 to 4 depending on area available

Betting shop: max 24 units

Bingo hall: max 75 units

Arcades: the number of slots can doubling that of other machines mx (e.g. 10 amusement machines = max 20 slot machines)

• Cost of the various licences: free

• Revenue from Gaming: € 25,200,000.00

(+17% on 2008)

Comment from sponsor

As the Italian gaming market continues to become one of the most exciting focal points of gaming in Europe, solutions provider JCM Global held a customer summit, where the company successfully demonstrated the security and accuracy of its Universal Bill Acceptor (UBA®), Intelligent Cash Box (ICB®) and Sentry bezel to a standing-room only crowd of Italian VLT operators in Rome.

JCM Global hosted the summit for VLT operators and their partners, showcasing a premium selection of JCM Global products, each designed to meet and exceed VLT operator needs. JCM presented the award-winning and worldwide-proven UBA and ICB, and the Sentry bezel, a faceplate which helps operators to streamline their operations.

“We were given the possibility to demonstrate the strengths of the JCM products, and I hope the VLT operators will specify JCM as their preferred bill acceptor in the future,” added Michael Seils, JCM Sales Manager for Italy.

Attendees at the summit were shown ICB’s full capabilities. ICB securely stores monetary and technical information inside each cashbox, making it a powerful tool for operators to reduce variances and manage their cash and service teams easily.

After the demonstration, one VLT operator commented, “ICB offers 100 percent accuracy and security. Especially in environments like the Italian VLT, where machines are operated all over the country and a central administration of bill drop and technical service is vital.”

Sentry bezel offers players an eye-catching attract mode and shows status messages to casino staff which results in an increased performance and maximum up-time of the acceptor. “With Sentry, the operator easily receives information about the bill acceptor status with one glimpse,” Seils said.

JCM Global is the automated transactions solutions provider trusted by operators and manufacturers alike. Its global offices provide top-level sales, engineering and service for the world’s best systems solutions for the banking, gaming, kiosk and retail industries. JCM Global sets standards with products such as the Universal Bill Acceptor (UBA®), Intelligent Cash Box (ICB®), the Vega™ bill validator and the new iVIZION™ bill validator. For more information, visit www.jcmglobal.com.

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