The Italian government continues its battle against online betting and gaming Web sites, including those based in the European Union. The new Italian Budget Law 2006 requires Italian Internet services providers to block access to "unauthorized" gaming operators.
Under Italian law, gaming is divided into two categories: 1) prohibited games, such as poker, chemin de fer, roulette (which can be organized only in Italian casinos, each licensed by a specific law), and 2) licensable games (betting, lottery and bingo). Licensable games fall within the state's monopoly.
The Italian Monopolies Authority, Amministrazione Autonoma dei Monopoli di Stato (AAMS), on February 13, 2006 adopted a blacklist of "unauthorized gaming operators." Italian ISPs were called to block access to the blacklisted Web sites starting at midnight on Feb. 24. Presently, 553 sites (both European and non-European) are included on the list.
Unauthorized service providers can be fined between EUR 30,000 and EUR 180,000 for each breach.
Foreign betting firms have responded by attempting to fight the policy. U.K.-based bookmaker Stanley International Ltd. asked the Administrative Court of L'Aquila to stay the decree of the Italian Monopolies Authority, but the court rejected the request on Mach 30, finding that the claim lacked the grounds required by administrative law to issue such an interim measure.
According to Francesco Portolano of the law firm Portolano Colella Cavallo, blacklisted Maltese betting operator Astrabet Ltd. tried an alternative route.
"[Astrabet] sued before the civil Court of Rome the Italian Monopolies Authority and SO.GE.I. SpA (the company in charge with providing IT services to Italian Monopolies Authority)," Portolano explained.
The company's lawyers argued that the recent Italian regulations on e-gambling infringe rights granted both by the Italian Constitution and EU law. Those rights, Portolano said, include freedom of establishment, freedom to provide services and rules on privacy of telecommunications.
Astrabet then argued that the blacklist caused irreparable damage and asked the Civil Court of Rome to issue interim measures to adequately protect Astrabet¹s rights.
A group of Italian operators, S.N.A.I., Trionfale S.r.l., Lottomatica S.p.A., SISAL S.p.A. and Match Point S.p.A. (all duly licensed under Italian law), filed amicus curiae briefs arguing in favor of the validity of Italian legislation on betting and of the blacklist itself. But despite their opposing arguments, the Civil Court of Rome upheld the Astrabet's request on April 10 and ordered the Italian Monopolies Authority to lift the technical measures preventing connection to Astrabet's Web site.
"The court held that the betting services provided through internet by Astrabet may not be restricted by Italian law since, the court argued, Italian law does not apply to such operators," Portolano said. "This is because Astrabet provides its betting service without any physical connection with the Italian territory. Astrabet's servers are located in Malta; all the bets are collected into a bank account opened in Bank of Valletta, etc."
Since then, Stanley International has taken another stab at fighting the policy. According to Portolano, the Administrative Court of Rome (TAR Lazio) rejected a demand of relief filed by Stanley International to have the blacklist suspended.
"Due to the interim nature of the relief," Portolano explained, "the decision is very short and basically says that while an in deep review by the court of the legislation and regulation is necessary, it seems that the Italian restrictions to e-betting are justified by public policy and public security reasons."
Meanwhile, Portolano added, the Italian Monopolies Authority has challenged the Astrabet decision, and the first hearing in this next stage will take place May 29 at 10:30 AM. Astrabet has not yet filed its brief, but it can do so during the first hearing.