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EU Wants Sanctions Applied to US for Online Casino Ban
Posted by: SharpGambler on Fri, 22 June 2007 10:50:23 +00:00 (2398 Reads)
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After UIGEA introduction last October, several European gambling operators were forced to quit the profitable US gambling market. UIGEA was ruled unlawful by WTO and EU now seeks compensation.
Online gambling was under attack last year in the US. Late, on October the US passed the Unlawful Internet Gambling Enforcement Act making it almost impossible for online casinos to deal with US players.
UIGEA was challenged by WTO and after two months WTO ruled the UIGEA unlawful as it targeted, unfairly, offshore casinos. The UIGEA is viewed as a means of protectionism, what is not acceptable because of the free trade agreements US has under WTO.
In the meantime EU gambling operators were forced to pull out the US market, a region were up to half of the World's online gamblers are based, worth more than $15 billion.
EU officials say that Europe was looking for concessions that would commit the Americans to opening up other trade sectors. "We need new concessions that would be equal with the benefits lost" an EU spokesperson stated.
US will not have easy negotiations and the UIGEA will have a huge cost in terms of concessions US will have to make.
The Democrat Congressman Barney Frank is trying to reverse the UIGEA by introducing a new bill that seeks to regulate the industry instead of banning it, but his plans face fierce opposition from the Bush administration and his allies in Congress.
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