European Union investigates U.S. Online Gambling Laws

The European Union recently declared that it would investigate whether U.S. laws ruling out Internet gambling violate international trade rules. The European Commission has decided to start an inquiry into United States measures affecting foreign suppliers of Internet gambling services, inside the structure of its Trade Barriers Regulation (TBR).

The proposal was made by the Remote Gambling Association representing European operators. European online gambling companies claim that the U.S. Justice Division inquiries into their actions abuse world trade rules. This newly investigation will survey the next five to seven months, could result in the EU task action against the United States at the World Trade Organization. The main aim of EU (European Union) is to find is whether online gambling companies are partially being pushed out of the U.S. market.

So it is a big complains against U.S. Justice Division. If it is true then US should not be allowed to enforce its gambling laws selectively against foreign suppliers. European betting sites arguing that U.S. laws break international trade rules at the center of the objection make the difference of how and where bets are located. The European Online gaming companies, such as PartyGaming and Bwin Interactive Entertainment, complained in December that the US Justice Division crackdown on internet betting had singled out foreign companies. By U.S. crackdown on online gambling they took out billions of euros off the reserve market value of the European online gaming zone.

But it is great news for the other country that the WTO (World Trade Organization) has already ruled that the U.S.’s crackdown on online gambling is certainly unlawful. Others, the new observation team will present its result in an inquiry report which will go ahead to the launch of WTO proceedings ought to this be warranted. The EU commission will hardly handle this complain.

The U.S. has the right to address legitimate public policy concerns relating to Internet gambling, but discrimination against E.U. companies cannot be part of the policy mix, said E.U.