EC Supports RGA Complaint

March 25, 2008

The European Commission has decided to move forward on the Remote Gambling Association’s complaint against the United States and their passing of the Unlawful Internet Gambling Enforcement Act, or UIGEA. They allege that the bill allows them to participate in discriminatory practices.

They say that because the US allowed online gambling in the forms of horse racing, state lotteries, fantasy sports, etc. but did not allow outside countries to participate in the revenue that could come from such online gambling, that they are discriminating against them. They claim that this discrimination against “international organizations” led to a monopoly within the US that is not allowed under international trade laws.

The Remote Gambling Association is made up of many members, including but not limited to Party Gaming, Skybet, CryptoLogic, Microgaming, PKR, and Betfair – and this is simply a confirmation of an earlier complaint that was filed in December of last year. With the EC deciding to investigate, this could open the whole debacle to the World Trade Organization or WTO, getting them involved once again.

Initial reports had made it seem that there was a settlement between the European nations and the US, but now that seems to not be the case. They are of course only the latest to become involved in a fight against the US since the passing of the UIGEA in 2006. With legislators and online gambling companies alike pursuing the overturning of the UIGEA and pushing for regulation instead of elimination of online gambling, it would seem that the US is fighting a losing battle.

The RGA has obviously thought long and hard about what this battle would mean to its organization, and having taken the time to study the problem completely, and still choosing to pursue active litigation, would tell you that they are not going to go away quietly.

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