In April 2007 Rep Barney Frank introduced a bill to overturn the Unlawful Internet Gambling Enforcement Act (UIGEA) of 2006. The bill sets up a framework for taxing and regulating online gambling by individuals within the US and states ‘the existing legislation is an inappropriate interference with the personal freedom of Americans and this interference should be undone.’ So far the bill has not progressed far in the legislature.

The European Commission has just finalised its draft report following an investigation into US measures affecting foreign suppliers of Internet gambling services. It found that US laws on remote gambling and their enforcement against EU companies constitute an obstacle to trade that is inconsistent with WTO rules. Although the provisional conclusions of the report imply that WTO proceedings against US measures would be justified, the report also indicates that the issue should be taken up with the US Administration, with a view to finding a negotiated solution.

EU Trade Commissioner Catherine Ashton said: "It is for the US to decide how best to regulate Internet gambling in its market, but this must be done in a way that fully respects WTO obligations. I am hopeful that we can find a swift, negotiated solution to this issue." The report is the result of a formal examination procedure initiated on 11 March 2008, following a complaint lodged by the Remote Gambling Association (RGA). It will now be sent to EU member states for comments on the findings, and will be made public once finalized.

The European Commission concludes that proceedings against European companies are continuing despite them having withdrawn from the US market in 2006 following the enactment of UIGEA. The report states that these proceedings are legally not justified and discriminatory. In December 2007 the US and EU agreed a compensation package in exchange for the loss of trade opportunities as a result of the US intention to withdraw its WTO commitments on gambling and betting services but, according to the EU statement, this does not mean that the US could disregard its obligations in respect of past trade. (E-03.27.09)

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