USA in Negations Over WTO Compensation

December 14, 2007

European and United States governments are still undergoing negotiations over the US compensation of the European Union (EU) for withdrawing WTO commitments regarding remote betting - in short, for withdrawing their nation from the online gambling market. However, European officials maintain the desire to see the US re-open their markets and regulating the online gambling industry.
A press release sent out Monday by the Safe and Secure Internet Gambling Initiative (SSIGI) revealed British Government officials endorsing US regulation of online gambling.

"Rather than negotiating away settlements that could negatively impact the U.S. economy, the Administration and U.S. Congress should seek a more sensible policy solution and regulate Internet gambling," stated Jeffrey Sandman, spokesperson for SSIGI.

"As the British government has correctly acknowledged, it is clear that the futile approach by the U.S. to prohibit Internet gambling is a failure. Regulation of Internet gambling could bring the U.S. into compliance with the WTO requirements, protect consumers and generate billions in revenue needed for critical government programs."

The private secretary for the British Department for Business Enterprise and Regulatory Reform, Emily Bourne, scripted a letter to gambling companies and financial services. "The British Government has signaled quite clearly its support for regulation rather than prohibition of gambling by the recent implementation of the Gambling Act."

The compensation bid from the EU could be as high as $100-billion - an enormous penalty against the USA. An exact calculation has not yet been revealed as negotiations between Europe and the United States continue over the online gambling ban.

Peter Mandelson, EU Trade Commissioner, made a trip to Washington D.C. recently where he gave US Congress the inevitable ultimatum - open US markets to online gambling businesses or pay a hefty compensation.

Antigua and Barbuda has already placed their compensation claim against the US at $3.7-billion. In addition, the United States is open to trade concession demands from other member nations of the WTO who were effected by the unprecedented withdraw of the US from the online gambling market.

Antigua is already in the process of filing arbitration against the US with the WTO. If the EU and US do not finalize negotiations and come to an agreement by Friday, December 14, 2007, the United States may face binding arbitration from the European Union as well.