Hearsay says some hedge funds in Italy try to profit from the market inefficiencies created by Mafia operations. The question is whether the pricing changes are predictable from public data.
Jan 28th's Wall Street Journal described a trade dispute between Antigua and the US where Antigua claims the US is violating trade laws as it allows gambling (in some states), but does not allow foreigners to compete for these customers. The detail is that it's Internet gambling with servers in Antigua, so the Antiguans have to prove that 'Net gambling is the same as gambling in person. But the argument is a cute usage of the division between states' rights and federal dominion.
Update 2007-03-30:
Antigua won their WTO case against the US. This case's brilliance lies its attack on the US's federal vs. state division of control: i.e. the feds
determine international trade policies, while the state's determine local issues (like allowing gambling).
The three alternatives look like: 1) ban gambling throughout the US, or 2) legalize it federally, or 3) ignore the WTO.
We'll see which of the three wins.
And we thought internationalizing computers (i18n) caused problems.... ;)