News

11th March 2008 - By James Walker



The European Commission has launched an investigation into US measures affecting foreign suppliers of internet gambling services, within the framework of its Trade Barriers Regulation. The move could pave the way for a formal complaint with the World Trade Organisation.



The decision follows a complaint lodged by the Remote Gambling Association in December 2007. The European industry claims that the US should not be allowed to enforce gambling laws selectively against foreign suppliers, with respect to services offered at a time when the US had WTO commitments permitting online gambling. The Commission will now examine whether these actions are in breach of international trade rules and discuss the matter with the US.



EU Trade Commissioner Peter Mandelson said: "The US has the right to address legitimate public policy concerns relating to internet gambling, but discrimination against EU companies cannot be part of the policy mix. We are interested in a constructive and mutually satisfactory solution to this issue."



The challenge made by the RGA concerns the fact that laws and regulations that ban the supply of internet gambling into the US market were already in place at a time when the US had WTO commitments allowing such services. They also claim that the US is now selectively enforcing these laws against foreign suppliers, for online gambling services which they offered in the past.



The Commission said it will now engage in a detailed examination of the "factual and legal issues" raised by the industry in the next five to seven months, as well as seeking dialogue with interested parties and the relevant authorities.



The Commission will present its findings in an investigation report which could lead to the launch of WTO proceedings should this be warranted.



http://www.intergameonline.com/intergamingi/news/973/eu-opens-investigation-into-us-internet-gambling-laws/