Italy’s scandal-ridden former prime minister Silvio Berlusconi may end up riding to the rescue of the country’s gambling industry.
On Sunday, Italy’s President Sergio Mattarella surprised the nation by rejecting the new coalition government’s choice for finance minister. The news prompted a frustrated Prime Minister-designate Giuseppe Conte to resign, meaning Italian voters are likely headed back to the polls in another few months.
Earlier this month, the recently formed coalition of the Euro-phobic Five Star Movement (MS5) and the right-wing League party released a document outlining their plans for governing Italy, which included “the elimination of gambling machines (slot machines, video lottery terminals)” and “an absolute ban on [gambling] advertising and sponsorships.”
Industry reaction to the coalition document was a mix of incredulity and alarm, and reaction to the coalition’s sudden demise has been a mix of relief and uncertainty as to what comes next.
Incredibly, the coalition’s demise may resurrect Berlusconi’s once-dead political fortunes. The ‘Bunga Bunga’ icon’s attempt to run in the March election was prevented by his 2012 tax fraud conviction, but a Milan court ruled this month — before Monday’s demise of the MS5/League coalition — that he could participate in future elections.
The support of Berlusconi’s Forza Italia party could help tip the balance in favor of a new coalition of the League and Brothers of Italy parties in the next election, and Berlusconi would be able to exact concessions to ensure his support. And that likely spells relief for Italy’s gambling industry, at least on the advertising front.
Berlusconi is Italy’s media baron, controlling three of the seven national television channels, and Italy’s gambling advertising market is estimated at around €200m per year. Last week, Italian media outlets claimed Berlusconi went on a tirade after learning of the coalition’s proposed gambling ad ban, presumably because it would hit him square in his pocketbook, and you figure the guy’s annual Viagra budget alone must be in the low six-figures.
Bunga bunga — Italian for ‘you’re welcome’?
