RGA Complaint Spurs EC Study of US Policy

11 March 2008

The European Commission has launched an investigation into U.S. online gambling policy following a complaint by the Remote Gaming Association (RGA). The investigation will take five to seven months and include dialogue with interested parties and relevant authorities.

"The US authorities are investigating EU companies for services that they have offered in the past in the US," according to a factsheet published by the European Commission. "EU companies that had been active in the US have left the market, but this has not stopped the US Department of Justice (DOJ) from continuing to act against EU companies. In addition, EU companies argue that the DOJ has not been targeting US companies that were offering equivalent services.

"The Remote Gambling Association (RGA) argues that the legal situation in the US as regards Internet gambling was unclear in the past. Despite statements by the DOJ that Internet gambling was not allowed, many local companies were actively supplying this type of service. In addition, the US had in the Uruguay Round undertaken legally binding GATS commitments to allow non-discriminatory access to its gambling market."

If the European Commission finds that a breach of World Trade Organization (WTO) law has harmed EU businesses, it will start a dispute settlement case in the WTO against the United States.