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Lodging a WTO Case

The US online casino gambling situation has yet to either find an adequate resolution, nor has the new administration even addressed the big issues and allegations from the World Trade Organization and the European Union. The EU has found that the US is in very direct violation of WTO commitments and suggests that although launching a WTO case would be justified, perhaps it is more appropriate to really sit down and negotiate the situation with the Obama Administration before taking the case further. The EU online casinos have complained strongly about the US government’s biased enforcement of the UIGEA. One of the key debates from the internet gambling companies stems from the fact that some EU based internet gambling companies are still facing legal action from the US Department of Justice despite the fact that EU companies were active in the US market while the WTO commitments were in place.

The EU wants the situation resolved rather than just taking the US into a long and embittered battle with the WTO that could take years to find a suitable resolution. EU online casinos have lost significant revenues over the past more than two years that the UIGEA has been in effect. Not only are the online casino sites affected, but the internet gambling licensing jurisdictions have also felt the sting of losing revenues from the US.

The huge compounding factor in the situation is the fact that the US does have these online casino gambling commitments in the WTO policy – and to take that even a step further, the UIGEA is obviously a piece of protectionist policy rather than a real concern for the industry considering the carve-outs that are in place for US gambling and betting companies particularly.