The gambling industry’s corporate structure in a partially liberalised market

The forms of regulatory interventions in the gambling market differ across countries, but two main types are distinguishable. One is a monopoly regime in which national governments carry the activities directly through companies fully controlled by the State (i.e., Finland, Norway). The other is a licence-based system in which private companies are allowed to operate in the market under public concessions or licences (i.e., Spain, Italy). In licensed markets, gambling companies are often multinational firms with holding, sub-holding and several controlled subsidiaries operating worldwide. States have not any direct or indirect participation as shareholders in these companies. Instead, they must seek financial capitals from the market. As a consequence, some of these multinational groups are listed, others are controlled by private international hedge funds and almost all are financed by private financial institutions, making the financial sector one of the main stakeholders of the gambling industry. This paper describes the corporate structure of multinational gambling groups on the Italian market with a focus on the direct and indirect participation of the financial sector. The main critical implications of the relationship between gambling companies and financial institutions include a lack of transparency and a great lobbying power that can be used to influence the regulator.