New Complaints Against The U.S. In Internet Gambling Dispute
This week, the EU came to an agreement with the U.S. over compensation claims resulting in the unique move taken by the USTR of withdrawing its commitments in the online gambling sector of cross-border trade in service.
Today, European online gambling companies accused the DOJ of violating WTO rules by singling out foreign companies for prosecution. The RGA, headed by Clive Hawkswood said, "We have been left with no choice but to pursue all legal avenues available to challenge the U.S. Department of Justice for it's discriminatory enforcement activities against European online gaming operators."
The companies based in Europe are not happy with the deal that was struck earlier this week, which opens other areas of trade and prohibits gambling.
For 13 years, this agreement to allow such trade has been the law, now, the U.S. is taking the position that it never intended to include it in the treaty. Admitting a mistake was made in 1994, they are now withdrawing those commitments, and as a result, will have to pay compensation to any country that files a claim.
The U.S. lost its case at the WTO largely due to the fact that Internet gambling is allowed on horse-racing in the U.S.
Reports coming from the Horse-race industry within the U.S. see it as the only move the U.S. could have taken, so as to protect the domestic gambling services they offer.
Of course, the National Thoroughbred Racing Association believes this is a just settlement that the U.S. has offered. After reviewing statements on the agreement, the NTRA would have to say something like this as it does nothing to impact their operations and only affects other business' based in the U.S., such as Fed-Ex, UPS, the postal service, warehousing, and testing and analysis areas are some of those that will see more competition and reduced workers. If I was a horseman, I would also be happy.
NTRA president, Alex Waldrop is ecstatic over the outcome, saying “The U.S. withdrawal of its WTO commitments in gambling services was the only approach that could meet U.S. treaty obligations, remove the gambling issue from the WTO agenda, and restore stability to the domestic regulatory environment. The NTRA has long advocated the withdrawal of U.S. gaming commitments. This agreement is a major step toward the conclusion of the WTO dispute involving the U.S. regulation of remote gambling services.”
Of course, we all know that the end is not here yet. Friday, a decision from the WTO arbitration panel is to be made public and will set the terms of the penalty that the U.S. will have to pay to Antigua, who brought the claim.
