Brussels, 11/03/2008 (Agence Europe) - On Monday 10 March, the European Commission decided to open an investigation into trade barriers connected to the US ban on foreign suppliers of internet gambling services. This investigation follows a complaint lodged in December 2007 by the Remote Gambling Association (RGA), which represents nine out of the ten biggest European suppliers in this sector. The complaint focuses on US legislation banning online gambling and betting, as well as Washington's implementation measures and the discriminatory way this legislation has been implemented. The RGA says that the laws and regulations banning online gambling on the US market were already in place when the US made commitments to the WTO on these services. It also opposes the way in which Washington has selectively implemented these laws against foreign online gambling services, which they supplied in the past. The RGA therefore believes that the US measures contravene Articles 16-17 on market access and national treatment respectively, contained in the General Agreement on Trade in Services (GATS). European remote gambling suppliers withdrew from the US market after the adoption of the Unlawful Internet Gambling Enforcement Act in 2006. The US justice department is currently looking into the activities of European companies that operated before the USA's continued withdrawal from its commitments on GATS. The opacity of US legislation, the US commitment to the WTO on online gambling and betting services and the presence of US companies on the market led foreign companies to also offer their services in the US. The RGA therefore thinks that Washington should not pursue foreign nationals or companies for activities that took place before the US's withdrawal from its WTO commitments.
The Commission will proceed with a detailed examination of the facts and legal aspects in the dossier by fostering dialogue with the stakeholders and US authorities in the hope of presenting a report in five or seven months time on what could lead to action being taken at the WTO. Trade Commissioner Peter Mandelson affirmed that, “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 the issue”. The RGA complaint and investigation are separate from the compensation package the EU and US agreed upon in December 2007 for closing down the online gambling and betting sector. (E.H.)