EU Online Gambling Operators Want Investigations Dropped

July 24, 2009 | News Category: Gaming Law

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Catherine Ashton, the European Union Trade Commissioner, and Ron Kirk, the United States Trade Representative are in the process of discussing and negotiating issues in connection with the United States ban on non-US online casinos, brought about by the introduction of the UIGEA (Unlawful Internet Gambling Enforcement Act).

Although Ashton is negotiating for compensation, this is only part of the focus of the current talks between the EU and the US. One of the issues of major importance to European Union online gambling operators who used to run operations in the United States, is that they should be free of discriminatory prosecutions which were aimed at them.

The Chief Executive of the Remote Gambling Association (RGA), Clive Hawkswood, noted that compensation has never been the goal of the RGA, but that they wish for assurances that no course of legal action will be followed by the US for any past actions that were done by individual online casino operators.

Mr. Hawkswood said "The implication of the complaint is that, yes, the US should bring its gambling rules into compliance with global rules on foreign trade, but the main issue for the RGA and its members is securing this indemnity from prosecution." He explained that after this has been done, then it would be possible for the EU to talk to the US regarding the other issues.

Although the US feel that they are justified in the many cases against EU Internet gambling operators that they have instigated, the RGA argues that the United States is trying to prosecute the EU Internet gambling operators for actions that took place before the end of 2007, at a time before the United States had actually withdrawn from their commitments as set out by the World Trade Organization (WTO) with regards to online gambling.

It is felt that the EU online gambling operators that are being prosecuted should be protected by the General Agreement on Trade in Services for activities that took place before the end of 2007. The point that constantly frustrated negotiators is that the United States chose to investigate only foreign online casino operators, while they purposely turned a blind eye to those online casino operators that operate from within the US.

Hawkswood has stressed that although it is understood that the main issue for the EU negotiators is that of trade policies and international law, the RGA's priority is to ensure that their members can be assured that they will not face legal prosecution for their past actions.