The Italian government shocked the online gambling world last year with its heavy-handed attitude toward stamping out online gambling in Italy. In February 2005, the country implemented a ban through internet service providers on all IP addresses originating from online gaming sites.

However, reports from Poker News suggest the Italians could be revisiting their traditionally tough approach in favor of cashing in on the lucrative tax revenues generated by the industry. Apparently, the Italian authorities are interested in replicating the United Kingdom’s regulatory environment.
To mark this about face, new legislation is expected to come into force from January 1, 2007, permitting Italian citizens to participate in online gambling legally without fear of repercussion. The legislation will also open the door for state-regulated bingo parlors and public sports betting outlets and will regulate all “ability based and fixed betting activities”.
This new found attitude has obviously been commented on heavily by the Italian press, who point out that the three percent taxation revenue the government will make on all gaming ventures more than justifies the decision. Another positive spin off effect is the potential growth of Italian online gambling businesses and the possibility that offshore based operators may set up shop in Italy’s favorable climate. In the words of one popular newspaper: “Will operators be flocking to set up in Italy? There are certainly worse places to be in the world!”

Whether the Italian government’s decision will influence U.S. legislators remains to be seen. Although the efforts of the anti-gambling lobby continue, it would appear that the U.S. Senate is unlikely to pass the Internet Gambling Prohibition Act before Senate takes a recess this week. Previous attempts to pass the Act as a stand-alone bill or as attached to other bills have all failed to date.

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