European Union ready to elevate the UIGEA divergence to court

  • 6-27-2008

Las Vegas Discount CouponsSince the introduction of the UIGEA in 2006, the U.S has been ignoring the claims of several countries regarding a series of trading violations and discriminating policies that affect directly their gambling industries. But even when the U.S representatives have maintained numerous meetings and WTO hearings, the government position is unlikely to change soon, and instead, the U.S has responded offering these countries new and more comfortable trade and commercial deals as a way to mitigate the political and legal pressure on its online gambling restrictions.  

Things are unlikely to change in the U.S, at list not in the next few months. The WTO already ruled in favor of Antigua and the U.S hasn’t changed its mind. Costa Rica, Japan and Canada also tried to persuade the U.S to ease its online gambling policy with no positive results whatsoever.  However, the European Commission has been conducting an investigation on the last months and it is ready to open a new case where several European online poker and Internet gambling firms claim that U.S gambling laws discriminate European companies and protect US operators, including US online horse-betting services. The U.S has responded saying that” there are no bases for any allegation of 'discriminatory enforcement' of U.S gambling laws".

The dispute is likely to escalate next month when the EU trade sends a team to Washington to present its case and provide a press conference. According to the E.U, 2006 Unlawful Internet Gambling Enforcement Act applies a series of preventing laws that prohibit telephone or online betting and keep financial institutions from handling transactions between U.S residents and offshore online gaming operators including online sportsbooks, online casinos and online poker rooms. The action has affected a number of public companies registered in Europe that are no longer allowed to offer their services in the U.S, losing billions of dollars and consequently falling in the stock market.

The U.S Department of Justice has also pursued UK-listed companies, including Bet on Sports, PartyGaming, Party Poker’s main operator and 888 Holdings, operator of PacificPoker.com and 888.com, for violations of the UIGEA.The EU Commission will investigate Remote Gambling Association statements in where they claim that U.S operators don’t have the same legal responsibilities as their offshore counterparts.

"The unfair and discriminatory treatment of the EU gambling industry and the continuing threat of prosecutions cannot be allowed to go unchecked." said Clive Hawkswood of the RGA.


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