The Italian government has practically turned on a dime regarding their legal stance of the online casino gambling industry. Reports are now revealing more details on this abrupt decision, which came shortly after the government had made it very clear they were going to embrace a prohibition of online gambling. However, instead of taking the route that the U.S. government seems to be heading (Senator Frist has succeeded attaching internet betting prohibition legislation to a Port Authority Bill as of yesterday), Italian legislators announced they would be accepting tender applications from independent companies seeking to tap into the Italian betting industry.

What is being described as a "mini-liberalisation" of the online casino industry, looks as if it will have some limitations and restrictions, although any willingness whatsoever on the Italian government's part to regulate rather than prohibit online gambling comes with a welcome embrace. The new policy of the Amministrazione Autonoma dei Monopoli di Stato (AAMS) is to regulate - through a distribution network - all betting companies who offer horserace and sports betting services.

AAMS will be issuing online gaming licenses to such companies, which will go into effect beginning January 1, 2007. It is not clear whether or not these licenses will cover online casino gambling, for all that is known at this point in time is that the licenses will "relate" to sports betting, horse racing, remote games of skill and "public games...of other nature". Italy has been very strict (some would say monopolistic) about their sports betting and lottery industry, which are both very large businesses there. Thus, with the regulation of a booming online gambling industry in Italy, it serves the government to benefit immensely through the introduction of regulation guidelines.

The deadline for the applications  is on October 20, 2006, at which time most of the regulatory details should be known. No word has been given on how many applications will initially be approved, however, many believe that regulations covering online casino gambling and poker could quite possibly be drawn up before the start of next year.