The European Commission has stated that US laws on online gambling and the arrest of European gaming company directors are illegal and obstruct legitimate commercial activity.
The EC added that although legal action under World Trade Organisation rules might be justified, “the issue should be addressed with the US administration, with a view to finding a negotiated solution.”
The Commission began its investigation last year at the request of European operators who quit the lucrative US gaming market in 2006 after Congress passed laws making it illegal for financial institutions to handle online gambling transactions.
US police then conducted a series of high-profile arrests of European executives on US soil and the US Department of Justice issued subpoenas against the investment banks that had advised European online gambling companies and pursued the founders of some of those companies.
The Commission concluded that European companies were still being pursued by the department even though they had quit the US market. EU trade commissioner Lady 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.”
