Last week, trade representatives from the European Union arrived in Washington, D.C. to inquire about the state of internet gambling enforcement in the United States. According to a report published by Reuters, the matter could now head to the World Trade Organization. Den Hende, counsel for the London-based Remote Gambling Association, told Reuters, “It looks very much as if this matter will be sent to the WTO at the end of the commission’s investigation.”
The complaint against the United States on behalf of companies in the European Union was filed by the Remote Gaming Association (RGA). Its Chief Executive, Clive Hawkswood, stated in a press release sent out last week, “We have no doubt that U.S. prosecutorial policy as regards 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’s membership base includes many publicly traded firms located in Europe, including PartyGaming and 888, both of which are listed on the London Stock Exchange.
Hawkswood continued, “The E.U. industry has had to accept the huge losses caused by the U.S. repudiation of its WTO commitments. 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.” In the United States, Congressman Pete Sessions (R-Tex) introduced HR 6663, which would specifically address this issue. The bill grants a reprieve for internet gambling firms that accepted U.S. customers prior to the passage of the Unlawful Internet Gambling Enforcement Act in 2006, but have since pulled out of the market.
Other RGA member firms include Barcrest, Bet 365, Skybet, PKR, Sportingbet, Ladbrokes, Microgaming, CryptoLogic, Victor Chandler, Unibet, and Paddy Power. In March, the European Commission elected to follow up on the RGA’s complaint, which the organization filed in December. Earlier this year, a deal was purportedly struck between the E.U. and U.S., although no details have ever been released. Instead, U.S. Trade Representative Susan Schawb cited “national security” as a reason why details had to remain confidential.
That prompted Congressmen Barney Frank (D-Mass) and Ron Paul (R-Tex) to author a letter to Schawb that inquired as to what concessions the United States was forced to give up: “Press reports have indicated that new trade opportunities will be provided in the postal and courier, research and development, storage and warehouse, and testing and analysis sectors, but no dollar amount has been attached to these new concessions, and very few specifics have been provided.”
The WTO could enact further sanctions against the U.S. for the way it handles internet gambling. It’s one of several ways that the UIGEA has come under fire in the United States. In Congress, Frank introduced HR 6870, the Payments System Protection Act. The bill calls for a list of illegal and legal activities under the UIGEA to be determined as well as suspends all regulations of the law except those that concern online sports betting. Although Congress has a targeted adjournment of this Friday, no movement on the bill has been announced; it was approved by the House Financial Services Committee last Tuesday. The Poker Players Alliance (PPA) has largely spearheaded that effort.
