EU Seeks Regulation Over Poker Compensation

A WTO ruling earlier this year ordered the US to reopen it's online poker  markets, but the nation instead chose to withdraw it's 'remote betting' commitments from their foreign trade agreement. This left the US open to compensation claims and trade concessions from effected member nations of the WTO.

The European Union (EU) has been locked in negotiations with the United States over compensation for the online gambling ban invoked by the US last year. With compensation to the EU alone scaling as high as $100 billion, the 27-nation EU continues to maintain their preference to see the US reopen it's markets with regulation of the online gambling industry rather than accepting a hefty compensation.

Emily Bourne, private secretary of the British Department for Business Enterprise and Regulatory Reform, wrote a letter to gambling companies and financial services, stating, "As the British government has correctly acknowledged, it is clear that the futile approach by the U.S. to prohibit Internet gambling is a failure. Regulation of Internet gambling could bring the U.S. into compliance with the WTO requirements, protect consumers and generate billions in revenue needed for critical government programs."

The Safe and Secure Internet Gambling Initiative (SSIGI) sent out a press release Monday that acknowledged British government officials endorsing regulation of online gambling by the United States. "Rather than negotiating away settlements that could negatively impact the U.S. economy," stated SSIGI spokesperson Jeffrey Sandman, "the Administration and U.S. Congress should seek a more sensible policy solution and regulate Internet gambling.

"As the British government has correctly acknowledged, it is clear that the futile approach by the U.S. to prohibit Internet gambling is a failure. Regulation of Internet gambling could bring the U.S. into compliance with the WTO requirements, protect consumers and generate billions in revenue needed for critical government programs."

Trade Commissioner for the European Union, Peter Mandelson, traveled to Washington D.C. recently to lay out the facts to US Congress - either open your markets and regulate the online gambling industry or face heavy compensation to the EU.

The deadline for the EU and US nations to complete negotiations is set for this coming Friday, December 14, 2007. If negotiations are not settled by the end of Friday, the USA may face binding arbitration from the EU as well. Antigua, whose compensation claim has been filed at $3.7 billion, is currently in the process of filing arbitration with the WTO against the United States.

According to the WTO, since the United States declined to comply with rulings that ordered the country to reopen their online gambling market, the US may be open to trade concessions from other WTO-member nations negatively affected by the US online gambling ban.