Legal poker rooms in EU countries - smaller selection?

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In some countries (eg. Italy, Greece, austria, Belgium as far as I know) you have 100% legal poker rooms (often run by a govt. company such as the national lottery company) but what's the deal with these?

For example all 4 countries I mentioned use the euro but in these national schemes players can't compete against each other, an Austrian against an Italian and so forth - the market is smaller, less wins - what is your take?
 
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