Italian opening confirmed after Microgame drops action

Microgame will not appeal an Italian court’s decision to reject its challenge to the government’s cash games decree, removing all obstacles to the launch of cash poker and casino in Europe’s largest egaming market, it has confirmed to eGaming Review.

As reported yesterday, the Lazio Administrative Court this week rejected Microgame’s challenge to the Italian government’s cash games decree, linked to fundraising for the earthquake-stricken Abruzzo region, with sources close to the matter suggesting that the decree will come into effect in the next few days.

Fabrizio D’Aloia, president and CEO of Microgame, current leader in Italian poker with the operators on its platform commanding around 30% of the market, today confirmed to eGaming Review that Microgame would not be pursuing any further legal action in relation to the cash games decree.

“For Microgame the matter is closed. Now we are looking with trust to the work being done by [Italian regulator] AAMS, and we are confident that the requests and needs of major gaming operators, which have already been expressed on the occasion of the first decree, will be taken into consideration,” said D’Aloia.

The Microgame chief said that the network provider ““ which had been seeking less arduous certifications of platforms and games by AAMS following its claim that changes to the decree introduced by Italian authorities after it was first approved by the European Commission would unfairly disadvantage operators on its platform ““ would now focus on working with the operators on its network to prepare for the opening.

“Microgame intends doing business and being at the forefront of the market from the very beginning. We are hopeful that the certification process and start-up is being rationalised in order to make it shorter and less onerous for all parties,” said D’Aloia.

Giulio Coraggio, a senior associate working in the Milan office of DLA Piper, however said that the delays caused by the court case meant operators were unlikely to be offering cash poker or casino to Italian players before the end of the first quarter of 2011. Existing operators will also be required to upgrade their licence and complete a further technical authorisation process before being allowed to launch cash games in Italy.

Martin Lerby, head of rival network Ongame told eGR that his company was “excited to acknowledge the Italian court ruling soon enabling the launch of cash games in Italy.”

Lerby added. “It is a decision which will significantly expand the Italian online poker market. Ongame’s main Italian partners, Gioco Digitale and Bwin, are considering the introduction of cash games to be the most exciting and valuable milestone yet after online poker was legalized in Italy. All members of the network are satisfied with the introduction of cash games.”

Gioco Digitale’s poker marketing manager, Michele Simone, said that the tax rate and conditions proposed by Italian authorities would also help bring the existing cash games market onshore, as has failed to happen in France.

“Cash games will have a strong effect on the revenues among the existing player base and will attract new players. Additionally, many Italian players currently active in the dot.com environment will move to the Italian environment since the product offering will be on par.”

For more on these developments, see Giulio Coraggio’s blog.