USA and EU Battle Over Online Gambling:

Author: Magyck0ne

The United States (USA) and the European Union (EU) are currently battling over the Unlawful Internet Gambling Enforcement Act (UIGEA) and possible violations of the World Trade Organization (WTO)

The EU is accusing the US of violating terms established by the WTO regarding online gambling companies operating within Europe.

A formal complaint could be lodged against the U.S. in the near future by the Remote Gambling Association (RGA) regarding the exclusion from the online gaming market in the United States, “It looks very much as if this matter will be sent to the WTO at the end of the commission’s investigation,” said Lode Van Den Hende, counsel for the RGA. This complaint also alleges that U.S. has continued to allow some American-based online gambling entities, like those processing wagers and bets on horse racing, despite the UIGEA of 2006

The U.S. will be looking at millions of dollars in damages if a formal complaint to the WTO is filed.

The RGA also was a firm supporter in the recently passed bill (HR 6870) by Barney Frank which challenged the original UIGEA of 2006 as well as the UIGEA Clarification Act (HR 6663) expresseing strong support for its sponsors for taking positive action to clarify the law.

The EU Commission is expected to conclude its TBR investigation and reach a decision before the end of this year. The decision will determine whether the case will be sent to the WTO for determination, followed by sanctions awarded against the US if the EU wins. However, if (HR 6663) becomes law it will go a very long way to meeting the concerns of the RGA and the EU.

Clive Hawkswood, the RGA’s Chief Executive, said; “We took our case directly to US legislators who have heard our message, understood the inequity of the Department of Justices’ stance, and appreciated both the unfairness in their
enforcement policy and the risk to US priority interests and its reputation if the policy was pursued further. This could be a major step in demonstrating that the RGA rule of law and the integrity of the WTO are still important in Washington.

Although this is a good sign, unless and until the legislation is passed and comes into force, all EU operators who have ever taken business from the US market are potentially still under threat of prosecution and we will be forced to pursue this matter as far as it needs to go to obtain a sensible solution and fair justice.

As representatives of the EU industry we have nothing but praise for the UIGEA Clarification Act supporters who have acted decisively to rectify an unnecessary and avoidable dispute and safeguard both principles of basic fairness and the trading relationship between the US and the EU.”