As reports emerge indicating that Italy will, from tomorrow, block Internet gaming sites that are not licensed by the Italian authorities, another report states that the US is unlikely to succeed in its new moves to ban online gambling, at least for the immediate future. Morgan Stanley is quoted as considering that the proximity of the November elections will make it unpopular politically to deprive over 30 million US online gamblers of their entertainment.

The Italian state is to block 684 online gaming sites, many that are licensed in Malta. Just as the US has come up against WTO rulings, Italy may soon be challenged over the legitimacy of its move under EU anti protectionist laws. Both the US and Italy will have to prove that any ban can be upheld on moral grounds, and not merely because the operators are based in other countries.

Italy has threatened to fine ISPs €180,000 every day they breach the law to block the websites. The action against foreign operators has been described as a move to protect Italians from ‘phishing’ attempts to defraud them. The recent introduction of the Internet Bill in the US congress follows previous failed attempts there to legislate against online gambling. With countries such as the UK and many others regulating the industry as a legitimate business, the global growth of online gaming is likely to continue.

In 2006 online gambling revenue is expected to reach US$15 billion and increase annually. Operators may seek to expand their client base in the non-US markets and will look for alternative payment facilities that do not involve credit cards but, for the time being, it seems that online gambling will continue to grow in the US and beyond. The aim of US legislators to prohibit such gambling may be less than successful. (E-02.23.06)

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