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Digital Money World

UIGEA: EU Files For Compensation From US

by Mark on June 20th, 2007

It was announced yesterday that the EU just got in line behind Antigua and Barbuda in seeking compensation from the US due to the effects of the recent online gambling ban. These jurisdictions are now seeking some type of compensation due to the situations resulting from the US foreign online gambling sites ban that does not comply with global trade rules.

UK companies including Sportingbet PLC and Leisure & Gaming PLC were forced out of the profitable US market after President Bush signed into law the SAFE Port Act of 2006. That new legislation also included the Unlawful Internet Gambling Enforcement Act. It has effectively banned online gambling from the US by prohibiting the transfer of funds to any Internet gambling web site from any US financial institution. This move by the US is in violation of its treaty obligations by not granting full market access to online gambling companies based offshore.

Of course excluded from this ban were ‘fantasy’ sports, online lotteries and horse racing. Why…ummm…because? Well, I’m not real sure why but it really did happen, I can’t make this stuff up!

These new regulations, blocked access to the most lucrative US market estimated to be worth about $15 billion the previous year. Last year the WTO ruled that the new US law unfairly targeted offshore casinos. The WTO told the US it could keep the restrictions on sports betting if they also applied to US businesses.

It is really amazing to stand back and watch the worldwide effects caused by this bastard of a new law. “What happened to the global online payments business after the UIGEA” …somebody should write a book with that title.

Negotiators for the EU admit that the talks could take a long time…well that’s an understatement. Good luck!

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1 opinion for UIGEA: EU Files For Compensation From US

  • DoughFlow
    Jun 22, 2007 at 9:06 pm

    Add Costa Rica to the list, as apparently the Costa Rican Minister of Commerce, Marco Vinicio Ruiz was expected to send a letter of intent to the WTO to claim damages against the US. Way to grow a pair Costa Rica! Its about time… all that was needed was some greenbacks on the table.

    P.S.
    And access to the US has not been blocked by this legislation. It has been disrupted somewhat, but nature abhors a vacuum, and new gambling payment solutions have replaced those of Neteller, Citadel and more.

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