EU Finds U.S. Web Gambling Ban Violated WTO Rules

Authored by Mark Hefflinger on March 26, 2009 - 9:27am.

Washington - The European Commission has found that current U.S. law is in violation of World Trade Organization rules, after an investigation into the effects that U.S. law had on European online gambling services when Congress banned online gambling in 2006. The report concludes that, while WTO proceedings against the U.S. would be justified, the EU should first take the issue up with the U.S. government, "with a view to finding a negotiated solution."

The Commission noted that its investigation took into account the agreement reached between the EU and U.S. in December 2007 -- a compensation package that addressed the loss of trade opportunities as a result of the U.S intending to withdraw its WTO commitments on gambling and betting services.

But it added that the agreement "does not mean that [the U.S.] could disregard its obligations in respect of past trade."

"It is for the US to decide how best to regulate Internet gambling in its market, but this must be done in a way that fully respects WTO obligations. I am hopeful that we can find a swift, negotiated solution to this issue," said EU Trade Commissioner Catherine Ashton.

http://snipurl.com/eme1h (Reuters)

http://trade.ec.europa.eu/doclib/docs/2009/march/tradoc_142695.pdf (PDF)