Extension of bingo licences: Council of State confirms referral to Court of Justice of the EU
The protracted legal saga surrounding the extension of licences for bingo halls in Italy has entered a new phase. The Italian Council of State, by decree following its plenary session on 29 April 2025, has reaffirmed its intention to proceed with a preliminary ruling referral to the .
This is far from a mere procedural formality: at stake are core principles of EU law—freedom of enterprise, freedom of establishment and market competition—and, fundamentally, the delicate balance between national regulation and EU law within a complex economic sector such as public gaming.
Origins of the case: automatic extensions and contested conditions
The matter originated with Decree No. 1071/2023 issued by the Council of State, which raised concerns over the compatibility of Italy’s bingo licence extensions with EU law. According to the administrative judges, the national extension mechanism presented several critical issues. Notably:
- it imposed a uniform increase in licence fees, irrespective of the enterprise’s size;
- it conditioned the acceptance of the extension on a prohibition against transferring premises;
- it indefinitely deferred new public tender procedures for the grants, thereby disrupting operators’ strategic planning.
In light of these measures, several licence holders initiated legal action, arguing that the policy constituted an unjustifiable restriction on freedom of enterprise and distorted market competition.
The (partial) EU Court ruling and the Council of State’s rationale
On 20 March 2025, the Court of Justice of the European Union delivered its judgment in a parallel case (joined Cases C-728/22, C-729/22, and C-730/22), finding the system of onerous licence extensions to be incompatible with EU law.
However, the Council of State Panel noted that the European Court’s decision did not specifically address all of the interpretative questions raised in the Italian referral, particularly:
- the proportionality of the restrictive measures;
- the compatibility with the market competition principle, which ensures operators’ free and fair access to the sector.
The Italian judges emphasised that the EU judgment was issued based on a referral that was “not entirely aligned” with the one advanced in Italy. Consequently, the Council of State has insisted on its own interpretative query, ordering the transmission of its decree to the Court and suspending the domestic proceedings pending a comprehensive reply.
A pivotal case for the public gaming sector
The dispute over the extension of bingo licences transcends a mere conflict between enterprises and the government. It represents a pivotal test of how far Member States can regulate protected economic sectors without infringing on EU law.
Italy’s interim solution – automatic licence extensions – was introduced to ensure continuity of service. Yet, opponents claim it distorts competition and disadvantages new entrants, who remain barred from accessing the market due to indefinite postponement of tender procedures.
It is on this very axis – between administrative order and compliance with EU competition and enterprise freedoms – that the legal validity of the scheme is being weighed.
Planning ahead: key indicators and upcoming developments
The matter now returns to the Court of Justice of the European Union, which is expected to provide a more thorough decision addressing the specific issues embedded in the Italian referral. In the interim, the domestic proceedings remain suspended, perpetuating a state of uncertainty for both businesses and public authorities.
The forthcoming ruling will be decisive: it may reshape the entire framework governing bingo concessions in Italy and set jurisprudential precedents applicable to other regulated sectors.
This article was first published in Italian on 22 July 2025.
