Unlawful Internet Gambling Update: EU launches investigation

The European Commission has now launched a formal investigation over U.S. actions. The Commission has submitted a list of questions to leading U.S. officials related to a possible U.S. trade violation for discriminatory trade practices against European online gambling companies.

The investigation is a result of a complaint filed by the Remote Gambling Association (RGA). The complaint was filed under Trade Barrier Regulations and claimed that the US is violating international trade law by threatening and pursuing criminal prosecution against foreign Internet gambling operators, whilst allowing domestic online operators to flourish.

The European Union's Trade Commissioner Peter Mandelson expressed interest in settling the trade violation, but argued that "discrimination against E.U. companies cannot be part of the policy mix." Previously, Mandelson stated that the U.S. Congress should consider opening its market to overseas operators as a solution to the WTO trade dispute over Internet gambling.

Congressman Barney Frank’s proposed Internet Gambling Regulation and Enforcement Act (H.R. 2046) would resolve the trade dispute by regulating internet gambling to create a level playing field between US and foreign operators. However, if the dispute cannot be resolved amicably, the Commission could forward the case to the WTO. The WTO recently rules in Antigua’s favour that the US engages in trade discriminatory practice against foreign online gaming operators.

More information can be found at:  http://www.safeandsecureig.org/ and http://www.rga.eu.com/.