U.S. Online Casino Ban Brings European Union Investigation
The birds are coming home to roost for the Bush administration, which has verbally been a staunch supporter of free trade, but in reality has broken several trade agreements in its insistent prohibition and persecution of online gambling sites.
As predicted here, the disappointingly small Antigua award from the World Trade Organization was only the beginning of the problems the federal stance would cause the United States. Even as the U.S. reluctantly negotiates with Antigua concerning the $21 million annual damages found by the WTO, the European Union has begun interviews with administration officials regarding damages down to member countries.
The Remote Gaming Association has asserted to the Union that its online casino members have not only suffered hundreds of millions in lost business since the passage of the UIGEA, but also the value of these companies have dropped by billions, all as a direct result of the U.S. trade embargo on online gambling.
Further, the RGA also argues U.S. prosecution of online operators for offenses committed before the UIGEA was passed are invalid, as the law was not clear as to what constituted a violation before then.
The findings of the European Union's investigation may lead to another, far costlier WTO case for the U.S., unless an agreement (possibly involving the U.S. Department of Justice backing off prosecutions) can be reached.
