The Remote Gaming Association, or RGA, announced that officials from the European Union would be visiting the United States this week to collect information on whether the United States is breaching “international treaties by continuing to enforce WTO-violating laws against E.U. businesses and individuals who once, but no longer, participated in the U.S. online gaming industry,” according a press release distributed by the organization on Tuesday.
The team of investigators arrived in Washington, D.C. today, coincidentally the same day as Congressman Barney Frank (D-Mass.) successfully pushed HR 6870, the second version of the Payments System Protection Act, through the House Financial Services Committee by a 30-19 vote. The E.U coalition is led by M. Jean-Francois Brakeland. The three person group is scheduled to meet with the U.S. Trade Representative, Department of Justice, and several members of Congress who have shown an interest in the dispute.
RGA Chief Executive Clive Hawkswood stated, “We have no doubt that U.S. prosecutorial policy in regards to E.U. online gaming operators is a clear breach of its WTO commitments and we applaud the E.U. trade office for taking seriously the concerns of the online gaming industry in Europe.”
The RGA filed a formal complaint to the European Commission in December, alleging discrimination in how the United States handles internet gambling. The basis for the confrontation stems from the passage of the Unlawful Internet Gambling Enforcement Act (UIGEA) back in 2006. The organization’s membership includes companies such as PartyGaming and 888, both of which accepted U.S. customers prior to 2006, but have since exited the market entirely. Hawkswood added,
What can’t be accepted is that companies and individuals, who respected Congress in 2006 and ceased taking U.S. business, should still be under the threat of criminal enforcement action today for conducting trade that they were entitled to do under the terms of the WTO agreements. That simply cannot be right.
The RGA is based in London. It filed its complaint on behalf of the internet gambling industry in Europe and focused on a decision by the United States to withdraw its obligation under the GATS treaty by continuing to threaten prosecution against European companies for soliciting U.S. customers before the UIGEA was enacted. Trade officials first tried to meet with U.S. officials in June, but the trip was canceled.
Other RGA members include Bet 365, Betfair, Skybet, Sportingbet, PKR, Microgaming, Cryptologic, Eurogaming, Paddy Power, William Hill, UNIBET, Victor Chandler, and Playtech. As a result of its investigation, the E.U. could file a fresh complaint against the U.S. with the World Trade Organization. Possible ramifications could include “implementing blocking-legislation to prevent U.S. enforcement in Europe; opening W.T.O. proceedings on U.S. enforcement of its laws versus conflicting international commitments; and consideration of the sanctions which would be sought against U.S. Industry if no amicable and fair solution can be found.”
A settlement between the E.U. and U.S. was reached earlier this year regarding internet gambling. It affected international shipping companies like UPS and FedEx in the United States by compensating the E.U. with trade benefits in that industry. A letter written by Congressmen Barney Frank (D-Mass.) and Ron Paul (R-Tex.) sought the amount of compensation given, but this was not made public.
