March 30, 2009 - 3:26am
The European Commission completed its report on the investigation into the U.S. measures affecting foreign providers of online gambling services. The report released last week resumes the probe that was launched after the Remote Gambling Association filed a complaint against the U.S. The work concludes that US laws deny access and discriminate against foreign suppliers of gambling and betting services inconsistently with US WTO obligations.
While the investigative group found that the U.S. laws banning remote gambling hinder trade operations in breach of WTO rules the Commission thinks that the issue should be taken up with the US Administration, with a view to finding a negotiated solution.
EU Trade Commissioner Catherine Ashton said: "It is for the US to decide how best to regulate Internet gambling in its market, but this must be done in a way that fully respects WTO obligations. I am hopeful that we can find a swift, negotiated solution to this issue."
Online gambling businesses in Europe are still prosecuted by U.S. authorities in spite of the withdrawal of European companies from the US market in 2006. The investigators came to a conclusion that these proceedings are legally not justified and discriminatory.
Interestingly, in December 2007 the EU and the U.S. agreed that the latter will pay a compensation in exchange of withdrawal of the U.S. WTO obligations on gambling and betting services. In case the U.S.’ commitments are terminated America will no longer be obliged to allow access to its gambling and betting market. Still the U.S. won’t evade its liability for the past trade obligations it infringed.
While the investigative group found that the U.S. laws banning remote gambling hinder trade operations in breach of WTO rules the Commission thinks that the issue should be taken up with the US Administration, with a view to finding a negotiated solution.
EU Trade Commissioner Catherine Ashton said: "It is for the US to decide how best to regulate Internet gambling in its market, but this must be done in a way that fully respects WTO obligations. I am hopeful that we can find a swift, negotiated solution to this issue."
Online gambling businesses in Europe are still prosecuted by U.S. authorities in spite of the withdrawal of European companies from the US market in 2006. The investigators came to a conclusion that these proceedings are legally not justified and discriminatory.
Interestingly, in December 2007 the EU and the U.S. agreed that the latter will pay a compensation in exchange of withdrawal of the U.S. WTO obligations on gambling and betting services. In case the U.S.’ commitments are terminated America will no longer be obliged to allow access to its gambling and betting market. Still the U.S. won’t evade its liability for the past trade obligations it infringed.