27th March 2009
According to a new report from Bloomberg, the news and industry information specialist, the US ‘crackdown’ on European online gambling companies is against WTO rules.
The European Union supposedly began its investigation back in March 2008, after a number of complaints were made by European online gambling companies. The commission discovered that regulations put in place by the US, allowed US firms to operate more freely and obstructed European companies.
The regulations by the US are illegal under World Trade Organisation rules and give the EU good grounds to mount a challenge.
Such companies as PartyGaming and Sportingbet have been affected and were two of the businesses to complain to the EU.
Despite having a ‘good case’, the EU are hoping to use this leverage to reach a negotiated solution, rather than moving forward with litigation.
Clive Hawkswood, the chief executive of the Remote Gambling Association, said, “If the US can give the EU some assurances it will no longer take action, then we’d be very happy.”
EU Trade Commissioner, Catherine Ashton later said, “It is for the U.S. to decide how best to regulate Internet gambling in its market, but this must be done in a way that fully respects WTO obligations.”
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