The angst and competition between European state lotteries and the online casino gambling industry has peaked following a recent report published by Dow Jones in which several European Lottery and Toto Association officials were quoted saying that online gambling facilitates addictions and is detracting from needed state revenue that otherwise would be generated from state-run lotteries. What is angering those in the online gambling industry the most is that the quoted statements referring to addictions is not backed by any proof or tangible study results whatsoever.

Apparently, the statements reflect an ongoing attempt by the monopolistic lottery industry to bring shame upon a sector of the gambling industry that is obviously dominating and taking business away from their own interests. Striking back for the defense of internet betting is the recent legal campaign against state operated gambling monopolies that is being spearheaded by the European Internal Market and Services Commissioner, Charlie McCreevy. His group claims that Italy, France and Austria all have not accordingly updated their gambling laws to be in proper compliance with cross-border laws in place by the European Union, but have been skirting around these conditions in order to protect their gambling monopolies.

According to a statistics published in the Dow Jones report, but whose source is not cited, European lotteries paid one-third of their ticket revenues in taxes, while online casino and gambling revenues only turned over a 3% tax margin. The report went on further to say that 91% of online gaming revenue turnover went back to bettors, and barely over half of lottery revenue went back to ticket buyers. While these figures may look good to the government, the players obviously have a reason to gamble online - out of the grip of monopolistic interests.

Perhaps the monopolies are looking to take over the internet as well, as evidenced by the increasing number of state-run lotteries offering online sports betting with the argument their services are more safe and efficient by imposing betting limits on all punters. For instance, Germany limits bets to 250 Euros per week, while France's monopoly limits bets on credit cards to 100 per week and 500 per week if done by check. Ongoing legislative movements and time itself will only tell how this battle plays out.  One good sign for the online casino and gambling industry is the way that Italy recently took an about-face on its stance and is now taking applications for independent gaming operators to offer certain forms of online gambling to Italian residents.