Can I Run Esports Events in Italy?
Legal notice: This information is legal information only and we do not guarantee the completeness or accuracy of any legal information provided. If you have any questions as they relate to your company, you should consult an attorney.
Recently I received a question about the legality of esports in Italy. While I am not barred in Italy and cannot provide legal advice regarding their laws, I was able to find some legal information to help get our Italian users started. If you are interested in promoting an event in Italy, it is certainly possible if you follow the corresponding laws. Below are some of the relevant laws and resources to get you started.
Helpful Resources
- Law firm DLA Piper’s overview of esports laws in Italy
- Blog post discussing changes to esports laws in Italy
- Official Government of Italy FAQ on the subject (in Italian)
Key Takeaways
- EU promoters hosting events in Italy are exempt from Italian prize restrictions, while Italian promoters are not.
- Italy’s restrictions on cash prizes and entry fees are strict.
Background
In early 2020 the Italian Football League Serie A TIM launched its first-ever esports competition. Players from 20 Serie A clubs fight each other for the inaugural title, drawing the interest of esports fans from Italy, as well as the rest of the world.
In a COVID-19 world where millions are required to stay at home, gaming is as popular ever. (I’ve certainly been enjoying the Resident Evil Resistance demo personally). And Italy is no exception, even though esports businesses operate in a less-than-ideal legal environment.
As in many jurisdictions, esports is advancing faster than the laws can handle. Nevertheless, some recent rulings by the Italian government have allowed operators room to meet the players’ needs and allow fans to witness the best gaming can offer.
Recent Changes
Recently, the Italian Ministry of the Economic Development has attempted to open up the esports scene in Italy with a recent relaxing of its rules. Unfortunately, it only applies to foreign entities based in the European Union, and not to local Italian companies or US-based ones, like Matcherino. Foreign, EU-based areas can run esports competitions with cash prizes and entry fees, exempt from Italian prize promotion law, so long as they are complying with prize promotion laws in their EU home country.
So if you can partner with a non-Italian EU promoter in Italy, it seems it would be easier to do that than hosting your own esports competition in Italy.
The Regulatory Framework
There is no specific law in Italy dedicated to esports, as is the case in some jurisdictions, like my neighboring state of Maryland. As a result, those involved in the business have to figure out their way through the regulation maze by applying multiple laws. These include, but depending on the situation may not be limited to:
Prize Competition Laws. Italy does not consider games of skill to be exempt from gambling regulations, though the restrictions may vary if skill is involved. As a result, even if your esport is a skill-based game, you are likely not permitted to offer cash prizes or charge entry fees above a certain amount.
Advertising Ban. Italian law forbids advertising related to gambling. Since gambling can include games of skill, this can further complicate esports organizing in Italy.
These are the key takeaways I have found, though I highly recommend the resources linked above for further information on the subject.
Andre J. Castillo and his law firm, Castillo Corporate Counsel, PLLC, provide business law services to tech start-ups and small- and medium-sized businesses. In this capacity, he has represented companies in deals with the world’s largest video game publishers, Fortune 500 companies, and government agencies. He can be reached via email at info@cccp.llc.
