Italy blocks Malta betting websites

The Maltese gaming council is insisting it is in line with EU law after the Italian authorities blocked access to various internet betting sites, including those based in Malta.

The Remote Gaming Council (MRGC) advised all those involved in the industry that it is currently following procedures according to EU law to ensure that such measures are withdrawn.

In what is widely acknowledged as a protectionist move, the Amministrazione Autonoma dei Monopoli Di Stato (AAMS) has blocked over 100 Malta-licensed internet gaming sites which they consider to be illegal. This comes in the wake of Italy's recent budget, which decreed that all online gaming sites which are not licensed in Italy will be blocked. Those ISPs who circumvent the action face stiff daily fines.

Following an extraordinary general meeting, convened by the MRGC management, advice was given to all members to lodge a formal complaint with the European Commission against Italy and AAMS. Another complaint will be sent by the MRGC in the name of all its members.

A meeting is being set up between the management board of the MRGC and MEPs Louis Grech and Simon Busuttil to inform them of the problem and to discuss what course of action would be best to follow. The MRGC underlined the fact that all its Malta-based members have to qualify for a license from the Lotteries and Gaming Authority (LGA) and to do so have to attain a high standard ensuring that, among other conditions, they are not used in fraudulent activities. Over and above, every operator has to present to the LGA the company accounts every six months for inspection and make sure that all is in order. Barring this, the license will be revoked.

The AAMS also claims that websites opened under Maltese law do not comply with Italian law and therefore put Italian-based companies, opened under Italian law, at a disadvantage.

However, one of the fundamental principles of European law is freedom to provide services across EU borders and there is no reason why Maltese gambling websites should be stopped, other than to protect the Italian government's monopoly, which runs the betting sector in Italy, the MRGC charged.

The number of licensed e-gaming companies in Malta has mushroomed in recent months, as Malta is considered to be one of the few licensed EU gaming domiciles with clearly set regulations and its gaming structures are considered to be ideal. Only last year, Betfair, a multi-billion euro exchange, selected Malta for a gaming licence and invested heavily to be able to exploit the trade benefits of a commercial licence.