Efforts by Italian ISPs to block Maltese online gambling sites may not continue for long if Maltese regulator Lotteries and Gaming Authority (LGA) have their way. Suggestion that the blockade against the site may not be in keeping with European Union policies may also inhibit further efforts to block the online gambling sites. According to the Maltese press, the Italian regulatory body has yet to discuss the issue with the Maltese who have complained that up to eighty of the sites that the LGA regulates are blocked by the Italian ISPs. Last week, the LGA website, which provides the only way that Italian online gamers can connect to Maltese online gaming sites, was also blocked by Italian ISPs. After an onslaught of complaints by the LGA to the Italian authorities, however, the blockade against their site was dropped. Mario Galea, LGA CEO said that he hoped the Italians would keep their word and begin 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.” As part of a new law in Italy designed to block 684 gaming sites not licensed in Italy, over 80 sites licensed in Malta were blocked on the grounds that blocking them protected Italian gamers from fraudulent acquisition of passwords and credit card details, also known as phishing. As part of the enforcement effort, AAMS, the Italian regulatory board, has said that it will fine Italian ISPs for Euro 180,000 each time that they do not block the websites and allow someone to place a bet with a “blacklisted” company. The Malta Remote Gaming Council, angered by the blockade, has said that there is no reason for it unless Italian authorities are trying to protect the Italian government’s monopoly on betting activities. Together with a small number of state-authorized private partners, the Italian state generated Euro 1.8 billion in revenues last year. Members of the Malta Remote Gaming Council are attempting to fight the actions of the Italian government by registering a complaint with the European Commission against Italy and the AAMS. Pressure on Italy is mounting, as several major British online gambling companies are also pushing the European Commission to stop the blockage of offshore Internet gambling sites. The Director General of Competition is currently reviewing the case. In the meantime, the LGA has also been working toward attracting visitors to its site. They are carrying out a publicity campaign on Italian media and online gambling forums to encourage players to visit its site to access Maltese gambling sites. The Gambelli case ruled that that EU member states could not block cross-gambling services, other than on grounds of moral objections. Other countries, such as France and Spain, are being subjected to similar EU legal cases. Posted on: April 18, 2006
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