It seems that the United States and Russia aren’t the only ones who have a problem with online gambling. Usually the trendsetters, introducing the world to such wonders as Armani suits and fascism, Italy seemed to follow America’s example in regards to online gambling. PokerNewsDaily reported that back in 2006, the same year the United States passed the Unlawful Internet Gambling Enforcement Act (UIGEA), Italy tried to ban all forms of overseas online gambling. The European Union, however, threatened legal action against them, citing that a ban against foreign online casinos violates their free trade agreements, and Italy, unlike the United States, cowered to the EU and decided to put off their new laws until after negotiating with the EU.

An agreement was reached in February of 2008 and enacted on July 27, 2009. Under the new Italian laws, there are a lot of new restrictions on poker. Cash games are no longer allowed. Poker can only be played in tournament format. Online gambling websites located in Italy can only accept Italian players and there is a limit to the amount of time each player can play. Benito Mussolini would be proud of the Italian Parliament.

With the restrictions placed on gambling within Italy, there will likely be a lot more Italian gamblers using foreign casinos, legal or not. Though overseas online poker sites are banned from accepting Italian customers, it seems likely that some unscrupulous casinos will break the rule. Similarly, it can’t be that difficult for an online poker player in Italy to make it appear to the casinos and banks that they live outside the country. Therefore, it’s possible that the effort to control all of the profits of online gambling by banning foreign competition will result in Italy losing money.

Joke: The United States government is so bloated and regulation happy.  Audience Response: How bloated and regulation happy is it?  Punchline:It’s so regulation happy that Europeans are saying that the United States government is bloated and regulation happy. So much so that the European Union is threatening to file a case with the World Trade Organization over the US government’s ban on online gambling.

The European Commission released the “Trade Barrier Regulation Report”, detailing the negative effects the US online gambling ban has had on European gambling firms. The EU’s announcement of intentions to bring a case to the WTO (which could result in billions of dollars in compensation to the EU) immediately prompted a face to face. EU Trade Commissioner Catherine Ashton met with US Trade Representative Ron Kirk met to discuss various trade issues, among them, the US stance on online gambling. “Today was not a day to resolve any problems, but rather to set out the approach we are going to take, who would do what, and to agree to keep in touch,” said Ashton

Both the US and EU are planning further talks in September, each aiming for a “creative solution.” The US is eager to avoid further WTO disputes as a previous hearing resulted in a $21 million payment to Antigua. One issue that will likely have a profound on discussions is Congressman Barney Frank’s legislation aimed at undoing the UIGEA bill.

Since a potential multi-billion dollar judgement is composed of our hard-earned tax dollars, perhaps the federal government should worry less about protecting Americans from gambling problems they might develop and worry more about the over-regulation problem that it actually has?  Just a thought.

The greatest generation, the lost generation, the baby boomers, generation X and now… the Facebook generation. I have to say that it seems like the generations are going down hill. I knew things were getting bad when my Aunt’s best friend, a retired schoolteacher who is pushing 60, friend requested me on Facebook.

My Aunt’s best friend isn’t the only person who has caught wind about what all the hip kids are doing these days. Betfair, a UK-based online gambling company, is joining the likes of Goldman Sachs and placing their bets on the United States legalizing online gambling in the near not-to-distant future. “We want to bring the Facebook generation to the track,” says Gerard Cunningham, head of Betfair’s U.S. Operations.

Perhaps it would be more accurate to say he hopes to bring the track to the Facebook generation. Plans include the hefty $50 million investment/acquisition of Los Angeles-based American TV Games Network or “TVG.” TVG operates a television channel that broadcasts horse racing to 32 million homes throughout the United States.

In Silicon Valley, Cunningham and company are constructing a technical team that will fuse the television property with a powerful website to stream live horse racing and incorporate social networking (because the kids love social networking), Twitter feeds, etc.

Currently, Betfair is only involved in horse racing and steering clear of any legal road bumps. “When other forms of gambling become legal, we’ll be ready,” he says. “Until then, if it’s even a gray area we’re not going to touch it.”

On Monday, officials from the United States and European Union met to discuss online gambling, among other issues. According to the European Union, the US passing the Unlawful Internet Gambling Enforcement Act (UIGEA) in 2006 was a violation of trade agreements between the US and the EU. The EU conducted an investigation into the matter that resulted in sending a letter to the US earlier this year. The United States has been avoiding the issue for a while, but as officials from both bodies met on Monday to discuss the matter, it seems that both sides want to resolve the conflict.

EU Trade Commissioner Catherine Ashton stated that Monday was a day to “set out the approach we are going to take, who would do that, and agree to keep in touch.” Both sides are looking for a solution that does not hurt them or hinder foreign relations. The US and EU met to discuss four areas of their trade agreement, with online gambling being one of the four. Ashton and US Trade Representative Ron Kirk will attempt to resolve the disagreements in the coming months. If they cannot come to a compromise, the issue will then be taken to the World Trade Organization (WTO), of which the US and EU are members.

The EU doesn’t want to miss out on the money, $14 billion in 2007, generated by online gambling. With many online gambling sites in foreign countries attracting customers in America, legislation passed by the US to ban “unlawful” online gambling affects foreign markets. Back in 1994, when the United States signed the General Agreement on Trade in Services (GATS), they failed to put gambling on the list of exemptions from the free trade provisions. Though the EU has no authority over US law, the WTO has authority over international trade agreements between the two bodies. The US may have to either amend the law or provide monetary compensation to the EU. There was a similar dispute in 2003, when Antigua challenged that UIGEA violated their trade agreement with the United States. The WTO ruled in favor of Antigua.

Regardless of how it turns out, it seems that the days are numbered for UIGEA, which is also under attack in a lawsuit filed by the Interactive Media Entertainment & Gaming Association (iMEGA) and in legislation introduced by Representative Barney Frank.