U.S. Regulation of Internet Gambling Needed to Resolve Dispute

    WASHINGTON, Dec. 20 /PRNewswire-USNewswire/ -- A formal complaint filed
 today by European online gambling operators for claims of discrimination
 and violation of international trade law by the United States should
 encourage U.S. lawmakers to regulate Internet gambling. Legislation
 introduced by Representative Barney Frank (D-MA), the Internet Gambling
 Regulation and Enforcement Act, would regulate Internet gambling and
 resolve the pending action by creating a level playing field among domestic
 and international operators.
 
 
 
     "This complaint complements the current legislative initiatives led by
 Representative Frank," said Nao Matsukata, formerly Director of Policy
 Planning for USTR Robert Zoellick and now a Senior Advisor for Alston and
 Bird LLP. "It is consistent with the effort to establish a non
 discriminatory market in the United States."
 
 
 
     The action was filed under a provision of the European Union's Trade
 Barriers Regulation by the Remote Gambling Association (RGA), which
 represents the largest remote gambling companies in Europe. RGA asserts
 that the U.S. Department of Justice is in violation of international trade
 law by threatening and pressing criminal prosecutions, forfeitures and
 other enforcement actions against foreign online gaming operators while
 allowing domestic U.S. online gaming operators, primarily horse betting, to
 flourish.
 
 
 
     "We applaud the efforts of the RGA and agree that Congress should take
 action to end the current discrimination against foreign online gambling
 operators," said Jeffrey Sandman, spokesperson for the Safe and Secure
 Internet Gambling Initiative.
 
 
 
     The RGA complaint comes in the context of an increasingly contentious
 trade dispute over online gaming resulting from Antigua's World Trade
 Organization (WTO) victory over the U.S. earlier this year. After the
 W.T.O. ruled that the U.S. had violated trade rules in barring Antiguan
 online gaming operators from the U.S. market, the U.S. withdrew its W.T.O.
 obligations with regard to free trade in the gambling area. Earlier this
 week, the European Union and several other countries, including Japan,
 Canada, and Australia, agreed to accept compensation from the U.S. for the
 withdrawal of market access. However, the trade concessions do not address
 charges against the U.S. for discriminatory and protectionist practices
 against foreign online operators that took place before the withdrawal of
 the commitment.
 
 
 
     "The U.S. decision to pursue the compensation negotiations with these
 countries was unfortunate," Matsukata said. "This filing by the RGA is a
 welcome development; it is an effort to restore integrity back into the
 international trading system."
 
 
 
     "It is unfortunate that the Administration has unilaterally acted to
 resolve the WTO Internet gambling dispute by continuing to block E.U.
 operators from accessing the U.S. market," added Sandman. "It is time for
 the U.S. to end its hypocritical practices that discriminate against
 foreign online gambling operators, while allowing U.S. gambling operators
 to accept bets for certain forms of gambling. Regulation of Internet
 gambling should be supported as a means to resolve this trade dispute."
 
 
 
     A provision of the E.U.'s Trade Barriers Regulation allows any E.U.
 company or association to complain against obstacles to trade in other
 countries, which the E.U. must then investigate. After the investigation,
 the E.U. could pursue discussions with the U.S. to find an appropriate
 solution to end the discrimination. If the parties cannot settle the matter
 themselves, the E.U. could bring a case against the U.S. to the WTO on the
 claims.
 
 
 
     About Safe and Secure Internet Gambling Initiative
 
     The Safe and Secure Internet Gambling Initiative promotes the freedom
 of individuals to gamble online with the proper safeguards to protect
 consumers and ensure the integrity of financial transactions. For more
 information on the Initiative, please visit www.safeandsecureig.org. The
 Web site provides a means by which individuals can register support for
 regulated Internet gambling with their elected representatives.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

SOURCE Safe and Secure Internet Gambling Initiative