In March, the Remote Gambling Association filed a complaint with the European Commission. The issue stemmed from the United States allowing domestic operators of sites that allow U.S. citizens to wager on horse racing, fantasy sports, and lotteries, but prohibiting operators like Party Poker from soliciting U.S. customers. This inconsistency prompted the RGA, whose membership includes the major online poker companies like Victor Chandler, Unibet, and Ladbrokes, to file a formal complaint. In response to the RGA’s complaint, the Commission sent the U.S. Trade Representative a formal questionnaire.
A public policy director for former U.S. Trade Representative Robert Zoellick commented on what the outcome of the Commission’s investigation could be: “If the E.U. takes the nuclear option and brings the U.S. to the WTO, serious damage would be inflicted on the bilateral relationship at a delicate time in transatlantic relations. Rather than taking this risk, the U.S. Trade Representative should work with Congress, as the United States Constitution instructs, to resolve the dispute by adopting Congressman Frank’s Internet Gambling Regulation and Enforcement Act to bring the U.S. into WTO compliance.”
Congressman Barney Frank’s legislation that Zoellick refers to is HR 2046, the Internet Gambling Regulation and Enforcement Act. The bill, if passed, would allow foreign online gambling operators to solicit U.S. customers by creating a comprehensive licensing framework. It was discussed in the House Financial Services Committee last June and still awaits its time on the House floor.
Jeffrey Sandman, spokesperson for the Safe and Secure Internet Gambling Initiative, stated in a press release: “The European Commission investigation further highlights the reckless manner in which the USTR has sought a protectionist trade policy, setting a precedent that threatens to expand beyond online gambling into other areas of trade.” Pundits have charged that, while the U.S. has actively sought to establish amenable relationships with its international partners, with regards to online gambling, the nation has passed isolationist legislation in the form of the Unlawful Internet Gambling Enforcement Act. The UIGEA became law in October of 2006.
The RGA complaint is just one of the current issues that surround the United States Trade Representative. Congressmen Barney Frank and Ron Paul, authors of HR 5767, authored a letter in March to the USTR demanding to know the monetary value of a World Trade Organization settlement. In addition, Ed Brayton has joined forces with Public Citizen, suing to make the amount of the settlement between the United States and European Union public knowledge. The settlement has affected companies in the worldwide shipping industry. When previously asked for this information, it was withheld on the grounds of national security.
The questionnaires are due back to the Commission shortly. The organization will then review the submitted information and decide whether to pursue a formal complaint with the World Trade Organization.