EU Reps to Meet USTR Kirk on Online Gambling Dispute
US Trade Representative Ron Kirk met with EU Trade Commissioner Catherine Ashton today, as the pair began talks over trade disputes between the two economic powers, including the disagreement over the US online gambling ban. The EU has advised the US it sees the ban as a block of free trade in services, and says the US enforces the rules in protectionist fashion to the disadvantage of European online casino operators.The two ambassadors agreed that today was not about resolution, but a day to set plans and agendas for developing talks. Both sides seemed cheerfully but guardedly optimistic that the disputes could be settled amicably.
Ashton said she brought to Kirk's attention a recent investigation by the EU that concluded US policies were hampering trade in the area of Internet gambling, and that the organization could rightfully claim infringement before the World Trade Organization.
European online gaming companies are claiming billions of dollars in damages due to both the US ban on Internet gambling and the persecutorial investigations into European operators who have long since left the US market. Such extortion-style efforts have resulted in hundreds of millions of dollars being paid by online gambling sites to the US to drop further inquiries.
Meanwhile, online horse race betting continues to grow unabated in the US, as domestic companies operate without even a blink by federal investigators.
The UIGEA ban now faces legislative challenges led by Barney Frank, judicial challenges led by the iMEGA lawsuit, and executive challenges led by the EU dispute. The problematic law has caused financial, political, and legal difficulties since the dark day it slipped into the last pages of an 800-page port security bill, passed without discussion or review.
