Online Casino Scrutiny > Casino News > November '07

European Union Increases Stakes for US Online Gambling Regulation

If the U.S. seriously thinks they are going to get away with passing the Unlawful Internet Gambling Enforcement Act and not facing any repercussions from the international community, they have another thing coming. I know that doesn't sound very threatening by the words alone, so picture a little, old lady brandishing a cane and capping the same statement with the word "sonny".

Well, I'll tell you one thing. Peter Mendelson is no little, old lady (not that there's anything wrong with that). What Mr. Mendelson has that no other little old ladies have or anybody has for that matter, is the position of Trade Commissioner in the European Union. A pretty powerful seat to say the least, the Trade Commissioner has the means to put some heavy fines on the U.S. in response to its protectionist behavior of online gambling activities.

Following the criticism of Internal Market and Services Commissioner of the European Commission, Charlie McCreevy, the U.S. has found itself in a more hostile situation than perhaps it bargained for. Granted, as negotiations are being made regarding billions in claims from EU and WTO members like Antigua and Barbuda, the U.S. is apparently opting to pay these claims in light of breaking their commitment to the WTO. However, Mendelson is saying that financial reparation is not enough.

While the Commissioner was in Washington DC recently to meet with Barney Frank about proposed legislation to regulate online casino gambling in the U.S., he made it known that he will continue to argue on behalf of the European market. Mendelson came out and said it: "Compensation does not do the job". Rather, online gambling legislation needs to be in place and discriminatory policies against European online casinos and betting operators must come to an end.

I know what you might be saying. It's just the European Union, right? What can they really do? Well, in regards to wielding financial claims, we are literally talking about billions of dollars (that's how much the U.S. market is worth). If you ask me, a nation who has lost so much favor in the international community cannot afford to lose even more by acting bullish and stubborn over something that can be effectively regulated.
 

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