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Further Angering Other Countries

The United States is at the forefront of criticism for other nations all over the world for blatantly protectionist legislation related to online casinos gambling. In October 2006, the United States Congress passed the Unlawful Internet Gambling Enforcement Act (UIGEA) a piece of legislation that specifically bans foreign and offshore internet gambling companies from operating legally in the U.S. market – the Act basically prohibits the U.S. financial industry from processing payments from the online casinos. Many nations are seeking compensation from the U.S. for alterations in international trade policy, and the World Trade Organisation (WTO) is involved in mediating many of the disputes. But what could really change the face of the arguments and debate against the current U.S. policy is a newly proposed bill out of California concerning state-run online casinos poker gambling.

Right now, the UGIEA is highly controversial in the international online casinos gambling industry because the Act openly defied trade policies at the time by creating a veritable gambling monopoly for U.S. internet gambling businesses. What angered many nations (particularly Antigua and the European Union is the fact that the UIGEA had carve-outs for forms of state-run online gambling operators such as Fantasy Sports leagues and horserace betting and the foreign and offshore online casinos gambling and betting companies are specifically and unfairly excluded from that market.

The debates on the Constitutionality of the UIGEA are rampant in the U.S. and most politicians and those affected by the UIGEA agree that the Act is fundamentally flawed and that the U.S. would be better served by a regulated and licensed online casinos gambling industry that allowed foreign and offshore operators access to the market. But while the many in the U.S. push to neutralize the internet gambling industry, the proposed legalization of online poker gambling in California could actually create a crisis situation of sorts where foreign internet gambling operators are even more angered by the limitations placed on foreign operators and protectionist legislation.