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E.U. argues online gambling crackdown violates international trade laws
In a report issued on June 10th, The European Commission concluded that U.S. policy prohibiting online gambling violates International Trade Commitments.
Gambling website operators have called for the E.U. to ask the WTO for $100 billion in U.S. concessions for their lost revenue. So far, the E.U. has been content to try to negotiate an agreement to end the current prohibition on Internet gambling.
There was a feeling of hope when the Obama administration took office, but so far very little has changed, and with the recent seizure of $34 million in player funds by the U.S. Attorney’s office in NY, things seem to be getting worse; even though Congress is on the verge of repealing the Unlawful Internet Gambling Enforcement Act, law enforcement officials continue to take action against offshore gambling sites.
At the core of the issue is the 2006, Unlawful Internet Gambling Enforcement Act, which calls on financial institutions to block financial transactions between U.S. customers and gambling sites.
The U.S. Justice Department has prosecuted operators of European-based sites based on the Wire Act of 1961. Most notably was the recent plea bargain and 9-figure settlement from former Party Gaming CEO Anarug Dikshit. Dikshit plead guilty to a charge “relating to illegal web betting” in December of 2008, and forked over an estimated $300,000,000.
The UIGEA legislation has several inconsistencies, the exception for horse racing is one of the inconsistencies in U.S. law that the European Commission has cited in arguing that U.S. policies are inconsistent and violate trade agreements.
For online gaming sites, Barney Frank’s recent legislation –The Internet Gambling Regulation, Consumer Protection, and Enforcement Act—cannot come to a vote fast enough. It seems until the bill is passed the DOJ will carry out the UIGEA to the letter of the law; and perhaps beyond.
This is especially true when we take into account that UIGEA does not become a law until December of this year. It has also been ruled that the 1961 Wire Act does not apply to Internet gaming. These discrepancies have caused legal experts to argue that the government’s recent action have no validity.
Front and center in the debate is the Poker Players Alliance, a grass roots organization dedicated to fighting for the rights of poker players. The PPA boasts 1,000,000 members, and is capable of generating a lot of buzz when it feels poker player’s rights are being violated.
The PPA has committed $3 million to lobbying Congress on behalf of poker players, and has been used as expert witnesses in court cases defending poker as a game of skill.
Regarding the recent seizure of $34 million in funds, from 27,000 poker players the PPA had this to say:
“The PPA is disappointed that this unprecedented action has been commenced against law abiding poker players. The payment processor funds frozen by the Southern District of New York belong to individual poker players –not operators of poker sites—and do not represent the proceeds of any gambling activity, much less illegal gambling activity... The PPA is coordinating a legal strategy to appropriately protect PPA members who are impacted by the Southern District’s action.”
You can read the full statement on the PPA’s website. |
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