More Trouble With The UIGEA – Talks Between EU And USA Postponed

US- and EU representatives agreed upon meeting in early August after the implementation of the UIGEA concerning the regulation of European gambling providers in the USA. This meeting was postponed by the United States and once more causes a stir.

2006, the UIGEA comes into Effect

When in 2006 the 'Unlawful Internet Gambling Enforcement Act' (UIGEA) came into effect in the USA, the online poker world changed. Many online casinos left the US American market due to the prohibition of transfers to their US customers as well as the threat of legal measures in case of a violation against the Act.

The poker world in the USA also changed. Since entry into force of the Act, the WPT increasingly struggles with decreasing revenues. Especially the TV monies decreased steadily in the past few years.

Already disputed at the Commencement of the Act

The UIGEA is also hotly disputed in the USA from its beginning. Since its implementation, numerous representatives like e.g. Barney Frank make an effort to terminate the Act.

At the polling over the law, the advocates of the Act caused a dilemma amongst the opposition: The vote about the UIGEA was linked up to the vote about the 'Security and Accountability For Every Port Act
of 2006' (SAFE Port Act) - an anti-terror law which was supposed to increase the safety of American ports. Thus, no representative was able to vote against the Act without being classified as unpatriotic - especially with regard to the happenings on September 11th.

Dispute before the WTO

The scolded gambling industry didn't remain inactive either and gathered diverse organisations like e.g. the 'European
Gaming and Betting Association' (EGBA). The EGBA filed a formal complaint with the EU. With bundled vigour they made their voice heard in the politics and ground out an appeal before the 'World Trading
Organisation'.

Especially the clash between the USA and the micro-states Antigua and Barbuda made it into the media as they weren't able to reach a settlement with the USA and insisted on indemnity payments in the amount of $3.4B. In the end, the WTO adjudicated the gambling industry $21M annually due to the financial losses. Antigua and Barbuda are still active before the WTO though and have announced that they want to instigate further measures.

The EU on the other hand seemed to have arranged itself with the USA without a resolution by the WTO.
Economical facilities for the EU member states in the USA were supposed to serve as a recompense. Naturally, the European gambling industry was not satisfied with the result. They pressed the European Commission into negotiating with the USA with regard to a regulation of European gambling providers, or indemnity payments.

Talks postponed

Now, the USA have postponed the talks with representatives of the European Union, which were scheduled for early August, for an indefinite period of time in the past few days, causing further fuel for conflict in the year-long dispute. US American representatives already talked about a strain for the transatlantic connections prior to the meeting. Experts ventured a guess that the talks will only be resumed after the American presidential elections on November 4th 2008.