Online betting may not have a squeaky clean reputation. The very mention of the word "betting" leads to all sorts of connotations, but gambling is a reality and the best way to 'face' it is by regulating the industry rather than to force it underground. We have seen this with land-based gambling locations and the opening of casinos, plus the successful sell-off of the former state-owned lottery operation.
In cyberspace, Malta certainly seems to be doing its bit not only to ensure any operation setting up shop here is above board, but it is actually the first member state in the European Union to publish remote gaming regulations - in 2004 - with a licensing process that is extremely rigorous. According to data supplied by the Malta Lotteries and Gaming Authority, there are already almost a hundred remote gaming (as these online operations are termed) companies that are licensed or are in the process of obtaining a licence.
The industry is currently worth €1 billion. It provides high-paying jobs to people mainly with IT backgrounds and the projections are just as rosy: it is expected to grow to €3 billion within five years, employing some 2,000, making it the fastest growing sector on the island. With so much at stake, and local operators just beginning to make inroads and benefit from the large EU marketplace following Malta's accession last year - and the global marketplace, for in cyberspace the world is your oyster - the case involving local company Zeturf Ltd calls for immediate public attention.
Not many countries are prepared to take Malta's approach to the regulation and the conduct of gambling and lotteries, which incidentally is reaping the state rich dividends. One country that is not far behind is the United Kingdom, which is expected to have similar regulation to Malta's in place by next year - essentially becoming a competitor to Malta.
Other countries have monopolies, many owned by the state, that preside over huge markets straddling both physical gambling locations and, with technological innovation, online gambling sites. So it is not surprising that the UK's Commissioner, Charlie McCreevy, who is responsible for the EU Internal Market and Services, should be pushing for remote gaming operators to be allowed into these markets where monopolies dominate their economic sphere. No EU-wide regulation has so far been introduced.
One country with such a monopoly that is fighting tooth and nail to defend its turf is France, which boasts a massive gambling market with full state blessing. When the national interest is called to the fore, big countries will seek to throw their weight around even with minnows like us - jobs there are at stake and a reported annual betting revenue of €9 billion from horse racing alone.
The case involving Zeturf and the French betting syndicate is highly complex. What has emerged from initial investigations carried out by The Sunday Times is that the French tribunal that condemned the Maltese company in absentia did not have the decency to give Zeturf enough time to be able to turn up to defend itself - the writ was served a little over two hours before the hearing was due.
Apart from issues related to the free provision of services across borders within the EU, there are less savoury ones that have emerged that have led local authorities to step in and take not just the French betting syndicate but indeed the country to the highest authorities in the EU. While the case is to be contested on appeal, with five of the top law firms engaged in the Maltese company's defence, this is a matter where the national interest also has to be put to the fore.
Prime Minister Lawrence Gonzi's decision to appoint a task force with four senior members of the Cabinet, including Home Affairs and Foreign Affairs, plus Malta's representative in Brussels is an indication of how serious this is being taken at the highest level. It is now to be demonstrated that Malta's national interest can be upheld, for that should come first, above all else.