An organization representing European online gambling operators has filed a complaint against the United States for discrimination based on violations of World Trade Organization rules.
The Remote Gambling Association asserts that the U.S. Department of Justice is in violation of international trade laws by threatening and pressing criminal prosecutions, forfeitures and other enforcement actions against foreign online gaming operators while allowing domestic online gaming operators, namely those involved with horse betting, to continue operating. The same complaint was brought, and is still being fought, by Antigua and Barbuda.
"We have been left with no choice but to pursue all legal avenues available to challenge the U.S. Department of Justice for its discriminatory enforcement activities against European online gaming operators," said Clive Hawkswood, Chief Executive of the RGA.
The complaint, filed under a provision of the EU Trade Barriers Regulation which enables any EU company or association of companies to complain about violations of WTO law by non-EU jurisdictions, follows Monday's announcement of a compensation agreement between the United States and the European Union over the United States' decision to withdraw gambling services from its commitments to the General Agreement on Trade in Services.
The European Union accepted a compensation offer from the United States that will open up certain services sectors, which was an unsatisfactory outcome for European operators who lost billions when they were shut out of the U.S. market upon the passage of the Unlawful Internet Gambling Enforcement Act.
The European Commission must now investigate the complaint, and if it finds that a breach in WTO law has caused harm to EU businesses it would start a WTO dispute settlement case against the United States.
"The deal announced this week between the United States and European Union only has future effect so does not undermine the basis of our complaint," Hawkswood said. "The ball is now in the European Commission's court but we believe it is self-evident that there are grounds for this to be taken to the WTO."