EU Investigations On US Gambling Laws Finished
The European Commission has ended its investigation into The US and its sudden punitive action on EU gaming companies. The completed report, compiled from months of research, will be released later this month and sources close to the project have hinted at its conclusion.
EU online gaming and gambling operated have learnt that The European Commission has finished its lengthy investigation into the US and its sudden clampdown on Europe’s gaming commissions.
The report, released later this month, will reportedly conclude that the US did violate global trade agreements when it targeted non-US gaming companies whilst simultaneously allowing US companies to act freely when it passed its infamous UIGEA (Unlawful Internet Gambling Enforcement Act).
The reports finding, if indeed as stated, are set to shake up the political dynamic. The European Commission is expected to go to the WTO (World Trade Organisation) – the global Trade watchdog - with the results in order to take action against the US.
The majority of EU gaming firms will not want a lengthy and drawn-out legal case and it is this desire for a swift resolution that it is believed the Commission will open bilateral dialogue with the new Obama administration in a hope to negotiate a deal without involving global law, the WTO and potential years in court.
"The report next month will back the EU's position," a source told Reuters in Brussels late February, "but the Commission intends to deliver its findings to Washington which it hopes will persuade the US to start bilateral talks to find a solution without going to the WTO. A case would take a very long time tied up at the WTO and in the current spirit of avoiding protectionist moves in line with the G20 (Group of 20 emerging and industrial nations) statement, action should be avoided."
The UIGEA, which forbids the transaction of funds between US citizens and Internet gambling companies, was one of the so called Midnight drop laws passed by the old Bush administration and one that should be reviewed by the latest administration. EU operators will hope that the Democrats will repeal the Republicans UIGEA or negotiate a deal.
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