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US Online Gambling law Breaches WTO Rules

27 March, 2009,  Milton Shaw, Staff writer


The EU Commission has handed down its much anticipated report into US online gambling laws as set out in the United State's Unlawful Internet Gambling Enforcement Act ("UIGEA").

The report concludes that "U.S. laws on remote gambling and their enforcement against EU companies constitute a barrier to market access on EU economic interests".  It goes on to state that the law discriminates against European based on online gambling operators, in favor of US based operators.

The report findings represent the EU's first formal accusation against the US Justice Department that its laws are in breach of US trade commitments and opens the door for the EU Commission pursuing action with the World Trade Organization.

It is expected however, that rather than filing a complaint with the WTO (as the Government of Antigua Barbuda did), the EU Commission will likely seek to negotiate a solution with the US.

In the meantime, House Financial Services Committee Chairman Barney Frank, continues to make noises supporting efforts to have UIGEA repealed.






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