A few months ago the European Union declared that they were going to investigate the United States ruling banning online gambling and how it is affecting trade agreements with European countries.  In preparation for talks between the United States and representatives of the European Union, a list of questions was sent to the representatives in the United States so that they could formulate their answers.  With the cases that were filed by Antigua and Barbuda against the United States due to the ban, the European Union decided to launch a formal investigation with the World Trade Organization also getting involved.

The meeting was scheduled for sometime this week, but the American representatives have postponed the talks that were supposed to take place in Washington, DC.  One of the issues at hand is the Unlawful Gambling Enforcement Act (UIGEA).  The act is considered discriminatory against non-U.S. operators of online gambling sites.  Most of the sites – poker, casino, and sports betting websites – simply banned American players in an effort to stave off prosecution by the American government if caught catering to players from the United States.

Besides being discriminatory, the UIGEA is considered by European countries hypocritical.  It excludes offshore businesses from the online gambling industry, yet local gambling operations, horse racing in particular, are still being permitted.  The brick and mortar casinos in the United States are also now under scrutiny.  So far the only state in the United States that has attempted to comply with the UIGEA in an effort to allow their citizens to gamble online is California.

The Remote Gambling Association (RGA) with the European Union composed and issued the formal questionnaire to Susan Schwab, the trade representative for the United States.  Schwab immediately filed a statement denying that the UIGEA was discriminating against European operators.  She went on to state that charges against gambling operators were made based on the nature of the business and not the nationality of the country involved.

The American government has been taking heat about the UIGEA since it was passed in 2006.  When the World Trade Organization ruled in Antigua and Barbuda’s favour, the entire issue came to a head and the entire world sat up and took notice.  The United States has decided to pay compensation to the two countries and withdraw from online gambling, severing a commitment to the WTO.

Even though the European Union has accepted trade concessions as compensation for the country banning online gambling, they decided to pursue the matter after receiving complaints from the RGA.  The United States has requested a postponement in the talks until an unspecified date.  No reason has been given as to why the country wants to postpone, although there have been rumors circulating that the upcoming Presidential election may be part of it.