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The Media Turns the Tide

For years the U.S. has discriminated against offshore online casino gambling operators, but it wasn’t until the 2006 internet gambling ban that U.S. trading partners took exception to the U.S.’s unprecedented actions. Antigua and Barbuda spent three years in legal battles with the U.S., and after winning their case with the World Trade Organization, the U.S. failed to comply with the WTO rulings. Then, after the passage of the Unlawful Internet Gambling Enforcement Act, other countries were severely affected by the legislative move and took up a new case against the U.S. through the WTO. The U.S. however stood by the online casinos ban and has until just recently would not honor the compensation claims of countries other than Antigua and Barbuda.

Recent media attention in the U.S. concerning the potential billion dollar compensation claims may just be enough to cause U.S. policy makers to pass legislation that neutralizes the online casino ban. Now that the EU, one of the U.S.’s most powerful trading partners, is involved in the WTO dispute the U.S. is forced to renegotiate its current stance on internet gambling. Recent media reports in both U.S. and UK papers place the EU compensation claims alone at nearly $100 billion. And as the WTO has recently had trouble with U.S. authorities complying with WTO rulings, the EU, Antigua, and other countries have commented that they would use retaliatory measures if the U.S. failed to appropriately compensate the countries affected by the online casinos ban.

Now that many U.S. industries and companies could be effected by the compensation negotiations, the mainstream media has jumped on the band wagon and is actively monitoring and reporting on developments between the U.S. and the rest of the world. Specifically, the negotiations for compensation from the EU involve trade compensation – but that form of compensation could end up costing the U.S. more in the long run than would simply allowing online casinos back into the U.S. For that reason, media in both the UK and the U.S. have begun to support Barney Frank’s UIGEA. Frank’s new act would effectively regulate and license the online casino industry and thus bring the U.S. into harmony with the international internet gambling industry.