• European Internet Gambling Firms Could Gain Access to U.S.

    25 August 2007


    The Bush administration, pressured by an unfavorable ruling by the World Trade Organization, plans to push for legal changes that could make it easier for European service companies, from engineering firms to law firms and shipping companies, to do business in the U.S., officials say.

    The U.S. is required to offer trading partners greater access to the American market because in May it lost a long-running dispute at the World Trade Organization over laws that banned foreign firms from offering Internet gambling services in the U.S.

    The White House plans to push for changes that could make it easier for European service companies to do business in the U.S.

    After the U.S. banned foreign gambling Web sites, EU trade officials sought compensation for billions of euros in lost income.

    The U.S. has been in a trade dispute over online gambling since 2003, mainly with Antigua and Barbuda.

    EU and U.S. negotiators are working out details of a compensation offer to open some sectors of the U.S. services market to greater foreign competition.

    Europe’s online gambling firms were hit particularly hard and complained to the European Union’s executive arm in Brussels. EU trade officials took up the matter with the WTO, seeking compensation for billions of euros in lost income. The EU invoked a rarely used WTO rule that requires a country that closes one market to foreign companies to open others to compensate trading partners.

    A host of countries, including India, Japan and Canada, have filed similar claims for compensation, but the talks with the EU and its $8 trillion service sector promise to have the biggest financial impact. As a result, while any affected sectors would be opened to all 150 WTO members, European companies stand to gain the most.

    The Office of the U.S. Trade Representative this month began talks with EU officials on opening some sectors of the U.S. services market to greater foreign competition.

    To be sure, the issue will be contentious and subject to fierce lobbying. Congress and state legislatures would have to sign off on changing laws that now protect American service concerns. States generally control access to sectors like insurance, engineering and legal services. The federal government controls foreign access to activities like shipping, telecommunications and postal services.

    The U.S. Internet gambling market is valued at more than $15 billion, so the outcome of the U.S.-EU negotiations will likely be worth billions of euros to European companies. “We have to offer something substantive,” says a senior U.S. official.

    “The U.S. could make this all go away by passing legislation,” says Nao Matsukata, a former senior U.S trade official and a policy adviser at Alston & Bird, which represents clients on online-gaming issues.

    The hearing set for September 4th, could also have a major bearing on the outcome.  Which is also the deadline for the extension given to the US.  As quoted by a senior US official “This could very well mean the UIGEA could be on the way out of the door.”

    Related News

    • 23 May 2020

      Shine A Light At Tsars Casino – A Brand New Online Gaming Venue

      With so many online gaming venues, players must have a hard time deciding which one to pick. Now that task is even harder because the new Tsars Casino is on the market and it looks quite dashing. Besides its stunning presentation... …lays the big portfolio full of various entertainment options. Its promotion section is also the talk of the town since it is quite impressive with its numerous incentives. A wide assortment of banking methods...

      Read full article
    • 01 May 2020

      Billy Spins is One of the Hot New Upcoming Casinos

      There’s a new star rising on the iGaming sky – Billy Spins casino. With an interesting design, it has a lot to offer. Starting with a great promotion section to its strong game portfolio, it provides a variety of entertainment options. A Sister Site to the Award-Winning Platform The team behind Billy Spins is responsible for developing one of the leading bingo casinos – Bingo Billy.

      Read full article
    • 14 August 2019

      Global iGaming Market Value to Increase to $94.4 Billion by 2024

      The Global iGaming industry is very large and very profitable. All around the world, people are betting on sports events, horse races, and enjoying casino games or interactive video slots. The industry seems unstoppable, but exactly what is driving this growth and how will it all look like in the future? Now, a new market report by Zion Market Research answers these questions and reveals some surprising statistics about the industry and the factors at play in its growth. Massive Growth

      Read full article