US anti-online gaming actions 'inconsistent' with WTO rules
Posted by Bev Freeman on 15 Jun 2009 at 15:06
The European Commission has released its findings on America's remote gambling laws and the action the US has taken against EU-based companies.
Low Tax Net said the report followed an investigation into American tactics and how they are impacting on international internet gaming providers.
According to the report, American law-making actions are hampering trade in a way which is not consistent with World Trade Organisation (WTO) rules.
The commission said that the findings mean that WTO actions would be justified, although the topic should also be brought up with the US government, the report adds, in an effort to broker an amicable solution.
Quoted by low tax net, EU trade commissioner Catherine Ashton said: "Internet gambling is a complex and delicate area, and we do not want to dictate how the US should regulate its market. However, the US must respect its WTO obligations. I hope that we will be able to reach an amicable solution to this issue."
The report emerged after the Remote Gambling Association (RGA) complained, leading to a formal procedure.
According to the report, the American laws discriminate against overseas online gaming companies in a way which is not consistent with US WTO rules.
The report also added that the US Department of Justice has said on many occasions that every format of online gambling is unlawful, although it has only been clamping down on non-American companies.
The issue dates back to 2006, when the US Congress passed a new law which in effect banned online gaming in America.
This meant many high profile European gambling firms left the American market.
Many of these companies were damaged through the loss of billions off their stock market values. According to Low Tax Net, many American online gaming companies continue to operate.
Furthermore, many overseas-based gaming companies have faced a legal action even though they have left the market, with US officials persuing them for their dealings before the ban came in.
The site also quoted Clive Hawkswood, chief executive of the RGA, as saying: “The publication of the full report will now enable others to see what a comprehensive and objective investigation was undertaken by the European Commission before it reached such a clear conclusion and found in our favour,
“This is another step forward in the process and we hope that negotiations between the US and EU on this issue will now progress to a satisfactory outcome without delay.”
Low Tax Net also said that the report noted that the US is to withdraw its WTO commitments relating to gaming. When this happens, America would no longer have to promise access to its gaming and betting market.
But the report also says that the withdrawal would only relate to future access to the market, and does not allow the US to ignore obligations connected to past events.
A significant development took place in 2008, when American authorities developed a final ruling on the 2006 law, which banned gaming companies from knowingly accepting money in connection with unlawful internet gambling, which included payments made by players through credit cards over the Internet.
The overall impact has been felt in a number of offshore states with tailored rules for remote gaming, including the likes of Costa Rica, Gibraltar and Barbuda, with hundreds of internet gambling companies now based in such territories.
