US and EU Far From Agreement

September 30, 2007

The European Union has filed disputes with the World Trade Organization (WTO) against the US for trade related compensation. Because the US has banned online gambling, other countries are now stepping forward and claiming compensatory damages as their countries are losing out on money because the US won’t let their residents gamble.

Compensation negotiations between the US and the EU have not come to an agreement yet, in fact, the US issued an offer to them just last week that was immediately rejected. They said that the offer was “insufficient” and are demanding more. They do not want monetary damages, they want the US to open up their borders to online gambling from other countries.

With Antigua and Barbuda filing similar claims against the US to the WTO, it seems that they are being hit from all sides. The WTO has already found in their favor, and are now considering how to punish us for the UIGEA. The US simply responded by removing the online gambling industry from their commitments with the WTO, but that is not really helping anything.

With their withdrawal they have now allowed WTO members to demand compensation, which some say could be as high as $100 billion. The EU is willing to consider changing their amounts if the US lifts the online gambling restrictions, and allow licensed and regulated international online gambling companies to come in.

This has already been proposed by the Internet Gambling Regulation and Enforcement Act of 2007 that Rep. Barney Frank is pushing for. If it is approved, it could save the US government, and basically us as taxpayers, a whole lot of money.


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