SOURCE: MSNBC.com

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According to John O'Reilly of Ladbrokes, Europe's biggest betting company, the UK approach forms one of three camps across the continent. The first group of countries has opened its borders to foreign operators and accepted "advertising promotion pretty much anywhere", says Mr. O'Reilly.

Next is a camp dominated by France, where countries have introduced laws to prevent foreign operators from entering tightly controlled domestic betting markets. The French parliament last month backed tougher measures to curb illegal gambling operators, signaling increasing political hostility to online gaming other than the state lottery, tote and licensed bricks and mortar casinos. "When it is not controlled, the offer of online gambling has the effect of supporting new forms of criminality and providing an important conduit for money laundering," said Philippe Houillon, the deputy proposing the amendments.

The third camp is occupied by those in the middle, debating the pros and cons of regulating gambling, but veering towards the former. "That is where Spain is going, and Belgium is heading the same way. At some stage they will create a domino effect, and Italy is the first of them," says Mr. O'Reilly.

Interested spectators are, among others, Greece and Ireland, while slot machines are making a lot of noise in the Czech Republic, Hungary and Poland.

Across this patchwork quilt steps the European Union, whose executive body has battled for years to enforce internal market rules in the sector. According to a judgment by the EU's highest court, member states may place curbs on private gambling operators, but these must be "non-discriminatory, proportionate and consistent". Restrictions cannot be justified simply to protect revenue of national gambling and lottery monopolies.

The European Commission's view is that too many member states fall foul of this requirement.

Charlie McCreevy, internal market commissioner, has brought infringement proceedings against at least half a dozen countries for restrictions on betting markets.

But, whatever the outcome of Mr. McCreevy's legal challenges, the prospects of Europe-wide legislation on internet gambling are non-existent. "Not a chance," Mr. McCreevy told the European parliament last month.

Additional reporting by Delphine Strauss in Paris and Tobias Buck in Brussels

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