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Non Cash Prizes Rocky times ahead for US online gambling industry
A legal team representing the European Union has recently visited Washington, D.C., to question legal and trade representatives about US Justice Department policies regarding Internet gambling. This announcement comes after repeated complaints by the Remote Gaming Association, the organization representing European online casinos, as to the practice of US prosecutions of legitimate foreign casino operators - despite the withdrawal of operations from the US market. This has been seen by many as unneccessary American interference.
However, in addition to this, the US is currently seeking to withdraw from free trade commitments that state that the country must allow online casinos the opportunity to compete with domestic, “real-life“ gambling. If the US gets its way, this may mean a decrease in the size and influence of the US online gambling market, which will have a knock-on effect on a worldwide scale. Even if this negotiation results in the U.S. being freed from the responsibility to obey the treaty, such a ruling would not prevent or help to cover the damages done by the closing of the US market.
A leading law scholar, Professor Joseph Weiler, views the situation as one with no real beneficial outcome, saying that, “It is a shame that the EU has to go this far to seek a solution to such an unnecessary and avoidable dispute that, if not solved, will have wide-reaching consequences for the U.S. and the systems it benefits from and needs to maintain.”
Trade experts are similarly wary of the outcomes of this potential negotiation, predicting rocky times for the U.S. trade relationship with the world if this case continued to fester. Many Republicans have even broken with party lines supporting the banning of gambling, to admit the regulation of gambling may well be a better solution, solving the international difficulties caused by the UIGEA, as well as taking a huge burden off the financial industry and making the Internet safer for children.