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Online Casinos Could Disrupt Balance

The ongoing dispute between the international online casino gambling industry and the U.S. government over restrictive and hypocritical gambling policies could come to a head in the coming weeks. Some in the industry speculate that the too much pressure from the European Union to resolve the issue could destroy the precarious balance that exists between the EU and the U.S. The EU and the U.S. already negotiated terms and trade compensations related to the dispute, but the many European online casinos are pushing the European Commission enquire into the terms of the settlement.

The crux of the issue lies in the fact that the settlement between U.S. Trade Representatives is not only sealed (neither side released the terms of the settlement), but the actual online casinos injured by the discriminatory U.S. gambling ban are not receiving any of the trade compensations in the settlement. The World Trade Organisation (WTO) has intervened into the online casino gambling debate on behalf of the small island nation of Antigua and Barbuda, but industry analysts predict that the EU and EC will not go to the WTO unless absolutely necessary.

Instead of going through the WTO, the European Commission is asking that the U.S. Trade Representatives work with the Commission, in addition to communicating with the U.S. Congress to find reasonable terms to settle the issue. Essentially, the UIGEA is gross discrimination against European online casinos, and the Commission is hoping to work with the Congress to pass more inclusive legislation, which would resolve the current issues with several nations.

Naotaka Matsukata, a politician associate with the USTR, noted, “The cumulative effect of US-WTO related actions over the past year has forced the EU to take this dramatic step. The line of enquiry opened by the questionnaire could reveal that the US is engaging in unfair, discriminatory, and selective prosecution of European online gaming operators.” The U.S. is currently involved in negotiations with Antigua and Congressman Barney Frank and others are hoping to push new online casino legislation through Congress in the coming months.