EU strikes compensation deal with US, European Internet gambling companies not happy

[The Buzz]

Instead of pushing it all the way to arbitration, the EU has struck a deal with the US in the WTO internet gambling dispute. This is a huge blow to European Internet gambling companies, which were hoping that the EU would pursue an aggressive stance and really stick it to the US, forcing a legal shift in the US stance on I-gambling.

Shares in PartyGaming were down 3.3 percent at 29.25 pence at 0900 GMT and bwin stock was down 2.6 percent at 25.95 euros.

"A bilateral agreement was signed in Geneva, which provides EU service suppliers with new trade opportunities in the U.S. postal and courier, research and development, storage and warehouse sectors," the Commission said in a statement.

"The U.S. also made concessions in the testing and analysis services sector."
The Commission said it would continue to press the United States for "a non-discriminatory policy towards Internet gambling."

http://www.reuters.com/article/compa...14465920071217

[Simmo!]

That's an incredible decision! Talk about misrepresentation. Just when you're thinking the EU has the ability to work, it turns around and pulls a stunt like that. No surprise there is anger.

[matted]

I heard it on NPR (public radio) this morning... I was not happy at all. And the trade sounds absolutely ridiculous to me. There was either some under the table type stuff going on or EU is counting on changes in the US after the next election cycle.

[The Buzz]

Japan and Canada have also reached a compensation deal ... updated story from Reuters.

http://ca.reuters.com/article/techno...00858720071217

Antigua, however, will not fold to any US compensation offer, short of allowing its Internet gambling companies access to the US market. Will be interesting to see what that settlement ends up being.

India, Costa Rica and Macau also still have claims open against the US.

[The Buzz]

The Internet gambling companies that lost billions of dollars when the UIGEA passed are now voicing their displeasure at the EU's compensation agreement with the US, which does not help their own business whatsoever.

"We have been left with no choice but to pursue all legal avenues available to challenge the U.S. Department of Justice for its discriminatory enforcement activities against European online gaming operators," Clive Hawkswood, chief executive of the Remote Gambling Association (RGA), said in a statement.

...

As part of a U.S. crackdown on Internet gambling, two founders of payments processor NETeller Plc were arrested in January. In May, BETonSPORTS pleaded guilty to U.S. racketeering charges and agreed to cooperate in a case against the company's founder and other co-defendants.

"The DOJ (Department of Justice) has repeatedly stated that all forms of online gambling are illegal, yet it continues to enforce this view only in connection with non-US businesses," the Internet gambling group said.

"As a result, the RGA has asked the EU to investigate the discriminatory enforcement regime as an illegal barrier to trade for EU businesses," the group said.

http://www.reuters.com/article/ousiv...BrandChannel=0