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Matthew Vella
The Lotteries and Gaming Authority is still awaiting an invitation for talks from the Italian gaming authority, three weeks since it launched a blockade of Maltese internet gaming sites.
Last week, the authority’s website, which now serves as the only form of access for Italian gamers to link up with the blocked Maltese gaming sites, was also blocked by Italian ISPs. The matter was reversed within hours.
The authority’s CEO Mario Galea said he hoped the Italians would keep their word to start discussions: “The Italians understand they have no problems with us and said they are ready to meet us. If they don’t, we would have to take diplomatic action, and that means the issue will be dealt with at government level.”
Over 80 sites licensed in Malta were blocked by Italy, part of a law enacted following its 2006 Budget to block 684 online gaming sites not licensed in Italy on the grounds it was protecting Italian gamers from “phishing” – the fraudulent acquisition of passwords and credit card details.
The Italian regulatory board, the AAMS, has threatened Italian ISPs which do not block the websites with a daily fine of EUR180,000 each time they allow someone to bet with a “blacklisted” company.
The Malta Remote Gaming Council said there is no reason why Maltese gambling websites should be stopped, “other than to protect the Italian government’s monopoly which runs betting in Italy.”
Italy’s gambling monopoly, belonging to the Italian state and a few authorised private partners, generated EUR1.8 billion in revenues last year.
The MRGC has now directed its members to lodge a formal complaint against Italy and the AAMS, with the European Commission. The MRGC will be sending in a complaint in the name of all its members. The council will also meet MEPs Louis Grech and Simon Busuttil.
A number of major British online betting companies are urging the European Commission to stop the Italian government blocking access to offshore internet gambling businesses. The case is currently under review at the DG Competition.
The UK’s Remote Gambling Association, whose members include 888, Betfair and William Hill, have sought legal advice from specialist legal firm Freshfields.
Mario Galea said that as a regulatory authority, the LGA did not have any remedy with the EU. “We haven’t taken action yet because the Italians said they are ready to meet us.”
The LGA carried out a publicity campaign on Italian media and online gambling forums to encourage players to visit its website to access Maltese gambling sites.
But even the Maltese website of the Lotteries and Gambling Authority suffered the same fate as the other sites, when it was also blocked from Italian gamers.
Galea said the matter was resolved “within hours” of getting to know of the illegal action, when the AAMS reversed their actions.
Italy’s move is widely held to have contravened European law by not informing the Commission before putting into force its law.
Critics say Italy has blocked cross-gambling services in contravention of the ruling of the Gambelli case, when three years ago, criminal sanctions were taken against Italian agents acting for Stanley International Betting Limited, a UK concern, for contravening Italian law which forbade non-Italian concerns from accepting Italian bets.
The ruling stated member states could not block cross-gambling services, other than on grounds of moral objections. It pronounced that any national legislation prohibiting betting activities without authorisation from the member state concerned, constitutes a restriction on the freedom of establishment and the freedom to provide services.
mvella@mediatoday.com.mt
Links: www.businesstimes.com.mt/2006/02/22/focus.html
www.lga.org.mt
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