RGA Welcomes Case against US Internet Ban

The European Commission decision to launch an comprehensively investigation into discriminatory practices by the United States (US) against EU gambling operators is supported by the Remote Gambling Association. This comes right after RGA filled a complaint in December 2007 in which they declare that the US Department of Justice is in breach of international trade law by menacing and pressing criminal prosecutions, forfeitures and other enforcement measures against foreign online gaming operators while allowing domestic US online gaming operators, primarily horse betting, to thrive.

The US Department of Justice has frequently affirmed that all forms of online gambling are unlawful, however persists to implement this view only in relation with non-US online gaming operators. In October 2006, the US Congress voted for the Unlawful Internet Gambling Enforcement Act, which effectively banned foreign online gaming operators.

This law strained many major EU online gambling companies out of the profitable US gambling industry, in spite of the US vow under the WTO treaties offering access to its domestic gambling industry. As a result, EU online gambling companies lost billions in market value overnight, whilst US online gaming companies continued to activate untroubled.

On top of the considerable financial losses experienced by their forced withdrawal from the US gambling industry, EU online gambling companies have had to put up with actual or threatened prosecutions, forfeitures and other enforcement actions by US prosecutorial authorities under pre-UIGEA penal laws. Consequently, the RGA has asked the EU to probe the prejudiced enforcement system as an illegal barrier to operate for EU businesses.