On the eve of another major European Court of Justice (ECJ) decision, the legal status of the unauthorised betting outlets that provoked the Gambelli and Placanica ECJ cases is continuing to haunt the Italian authorities.

It has been a week of good news and bad news for the Italian gaming authorities. Figures for the first quarter of 2007 show total tax revenues from the gaming sector have grown 13 percent compared to the previous year, with the slot business continuing to contribute the largest increase. The Finance Ministry indicates on its website that the sum of €3.4bn has entered its coffers with particularly strong growth in the income generated by slot machines and instant lotteries (scratchcards).

Vigorous trade group lobbying over the issue of street betting outlets have prompted a Government promise of further changes in the law.

The Italian gaming authority has begun to take action against operators of unlicensed ‘Punti Remoti’ following months of lobbying by companies that acquired betting licences last year.

Up to two fifths of UK-listed Gaming VC’s total revenues are in jeopardy after the company admitted this week that its contract with software supplier Boss Media had been cancelled in the wake of the operator’s sale of its Italian-licensed business in December.

The wayward activities of the southern Italian betting shop chain Betting 2000 have provoked strong action by local authorities and for once, they are sticking to their guns.

Turnover across Italy’s betting shop network hit an historic high of €291m in September and those figures are set to increase still further as new outlets open every day. However, the uneasy mix of legacy and newly licensed operators is raising tensions across the country.

Last week’s International Gaming Expo held on the shores of Lake Como brought together the world of online betting, represented by European operators, and casino operators from the US. Both took away some information on changing regulations for their sectors.

A conference on changes in the Italian gambling market, held this week in Rome, raised the possibility of a new simplified legal structure to accompany the national regulator’s new title. A much needed rationalisation of betting taxes may also be on the cards.

A worsening economic climate on both sides of the Irish Sea is weighing heavily on the forecasts for Ladbrokes and Paddy Power. Meanwhile, a reorganisation at Gala Coral could lead to job losses.