European Commission Releases Report on the UIGEA 

A press release from Washington stated that the European Commission had released its report on U.S. laws on Internet gambling concluding that they violate international trade rules and discriminate against foreign Internet gambling operators.

The European Commission report came after a detailed study that was initiated from a Trade Barrier Regulation complaint filed by the Remote Gambling Association. The following specific comments in the report are important. The existing domestic U.S. law, namely the UIGEA, creates a barrier for European gambling operators to access the American online market. The U.S. has violated international trade law by threatening and pursuing criminal prosecutions, forfeitures and other enforcement actions against oversees online gambling operators. The discrimination arises because the U.S. online gambling operators, especially those engaged in horse betting, have been allowed to operate unfettered. The report advocates a resolution of the issue through a negotiated settlement with the United States. However in the event of that failing the European Commission is prepared to bring a case against the United States to the World Trade Organization.

Reacting to the report Jeffrey Sandman, spokesperson for the Safe and Secure Internet Gambling Initiative, said, “The European Commission report provides yet another reason why the administration and Congress should support pending legislation to regulate Internet gambling, which would resolve the trade agreement violation and better protect consumers. The Obama Administration should seek to forge a new direction on Internet gambling, rather than keeping in place a protectionist trade policy that hypocritically discriminates against foreign online gambling operators.”  Sandman was referring to the Internet Gambling Regulation, Consumer Protection and Enforcement Act (H.R. 2267) introduced by Barney Frank.