Does the House Always Win? State Regulation, Market Dynimics, and Criminal Infiltration in the Italian Gambling Sector

This article analyzes Italy’s gambling regulation following its liberalization since the 1990s. While intended to boost public revenue and curb illegality, the system has fostered a hybrid environment where legal and illegal practices often coexist. Drawing on qualitative data, the study highlights fiscal inefficiencies, regulatory capture, and mafia infiltration. The state's dual role—as both regulator and beneficiary—has created structural tensions, reinforcing market expansion at the expense of public health and transparency. The authors argue for a critical reassessment of the current model, advocating for evidence based, multidimensional policies that balance fiscal goals with social and institutional safeguards.