The EU Commission released their draft report Thursday, in which they have found the US to be in violation of WTO (World Trade Organization) rules. As we all know, since the passage of the UIGEA in 2006, it is now against the law for banks and other financial institutions to allow outgoing and incoming transactions related to online gambling.
The European Union executive apparently wants to come to an amicable solution to this with the US Justice Department, and suggested that they will enter into negotiations before going forward with a formal complaint with the WTO.
Personally, I still don’t see why the US doesn’t get off their duffs and start the wheels in motion to regulate and tax online casinos/poker rooms/bingo sites, etc. There’s billions of dollars up for grabs, and with the shape the world economy is currently in, this move would help every country involved. The issue here is that while the US is missing out on a great revenue stream, the European casino operators have lost billions since the UIGEA was passed in 2006 because they were forced to leave American players out to dry.
Again, Barney Frank sums it up very well when he was quoted as saying “I’m struck by the people who think we have to abide absolutely and religiously by the WTO … but when it comes to banning gambling and the WTO, they ignore it.”