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A challenge from the European Union against US online
casino policy may be on the horizon. For many years, the legality of online
casinos in the United States was, at best, ambiguous.
The change occurred, last October, when President George W.
Bush signed the Unlawful Internet Gambling Enforcement Act into law. The law
effectively outlawed financial transactions for online casinos in the United
States.
As a result of the act, several British online casino
companies were forced to abandon the incredibly large US market. Addressing the
European Parliament, the European Union Internal Market Commissioner Charlie
McCreevy said, “In my view it is probably a restrictive practice and we might
take it up in another fora.”
McCreevy accused the United States of protecting its own gambling industry by
banning the online casino industry, largely operated overseas.
The United States continues to pursue various ways of putting pressure on the
industry. Just last week, the US Justice Department demanded the release of
information from some of the world’s largest investment banks in conjunction
with an investigation of online casino companies.
The US began its crackdown on online casinos and gaming in Texas, last July,
with the arrest of David Carruthers, Chief Executive of BETonSPORTS.
McCreevy used the term “prima facie” when describing the protectionist nature
of the new US rules against online casinos. The World Trade Organization was
discussed as a possible venue for attacking the US stand, but McCreevy was
hesitant due to the WTO’s drawn out negotiations to establish a new world trade
agreement.
In an effort to tackle obstacles to foreign competition, McCreevy has
established legal actions against several countries in the EU.
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