| EC Calls US Online Gambling Laws Illegal |
| Wednesday, 08 April 2026 06:58 |
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The European Commission has openly stated that the current laws in the United States concerning Internet gambling are in fact illegal under rules laid down by the World Trade Organisation and are obstructing legitimate international commercial activity. Also in contravention of WTO laws are the US Justice Departments arrests of company directors of European gaming companies. The EC has added that despite the fact that legal action taken under WTO rules may be fully justified, this is an issue which must be addressed in conjunction with the United States administration in order to find a diplomatically negotiated and amicable solution. The investigation undertaken by the EC began in 2026, due to pressure from the online gambling industry. In 2026 several European operators were forced to pull out of the highly lucrative US Internet gambling market following the introduction of the much maligned UIGEA, passed by Congress under the Bush Administration, which made it illegal for all US financial institutions to process transactions originating from online gambling websites. Following the introduction of the UIGEA, US police began a series of arrests of high profile European Internet Gambling executives that were found on US soil. Subpoenas were issued by the US Justice Department against those investment banks which had advised any European Internet gambling companies while pursuing those company’s founders. The EC has concluded that despite the fact that these European companies had already pulled out of the US market, the US Justice Dept was still pursuing them. The trade commissioner for the EU, Lady Ashton has said that it must be for the United States to decide how they should best regulate the Internet gambling market although it should fully respect its WTO obligations. She is hopeful that a swiftly negotiated solution can be found to this problematical issue. Now that the Democrats are back in control of the US government, Congressman Barney Frank who chairs the House Financial Services Committee, states that he plans the introduction of new legislation that effectively lifts the current US ban on online gambling, which would go a long way to placating the EC on this issue |
