US Online Casino Ban Not Acceptable to EU
The European Commission released the results of its investigation into US policies regarding foreign online casino operators. According to the report, the US restricts trade in violation of World Trade Organization standards by blocking and prosecuting overseas online gambling companies.
The EC says the US permits domestic Internet gambling, including that on horse racing and lotteries. But not only are European competitors barred, they also face persecution by the US Department of Justice.
Several Congressional figures had warned such a situation was imminent. Representative Robert Wexler of Florida has protested US actions concerning Internet casinos, saying the government wasn't abiding by deals struck with allies. Barney Frank is prepared to once again challenge other legislators to legalize and regulate online gambling.
The European Union says it will attempt to negotiate a settlement with the US before filing a formal charge with the WTO. The arrival of the Obama administration gives hope to such talks, as Bush officials were prone to ignoring complaints on trade violations.
If Frank's new bill, due sometime in late April, can pass, all the other points may become moot. Surely US investigation into acts which probably weren't crimes when committed, and certainly aren't crimes today if the law passes, will be dropped.
Without a deal, however, the US risks a WTO complaint of landmark nature and scope, potentially costing the country Billions. If shutting out Antigua's online gaming industry costs $21 million a year to the US, imagine what blocking all the varied European gambling companies will run.
