US Online Gambling Policy Faces Compensation Claims
15th October, 2007
US Faces compensation claims from online gambling policy
According to European trade forum experts, the US could face up to $100 billion in compensation claims because of their intent to turn their back on obligations with the World Trade Organization (WTO) for online gambling. Recently, the WTO ruled in favour of the Caribbean nation of Antigua over the US, claiming the UIGEA law in the US violates free trade agreements. Since avoiding this ruling, the US faces harsh criticism over their anti-foreign gambling policies and now is facing compensation claims from many other nations-including those in the European Union.
Nao Matsukata, the former director of policy planning for the Office of the US Trade Representative comments on the recent US action:
"The US decision is a major threat to a rules-based international trading system. If more countries follow the US lead and do the same thing, the entire WTO system could implode and that would be extremely dangerous for US economic interests and for free trade generally."
The US is making a risky move by withdrawing from their WTO contract. Some argue this will not help the US in terms of foreign relations in all circumstances--not just in reference to trade.
"Part of what makes the US such a formidable opponent in international negotiations is its credibility. That credibility is now at stake for the US government not just in the trade area but in foreign relations generally," stated Matsukata.
The recent US decision is critically important in the online bingo world, as bingo sites will take a major hit in revenue by losing the US market to the UIGEA laws.
