Post by jdaddy on Dec 19, 2007 15:55:04 GMT -4
[WTO] Online Gambling Loses Bet On US Ok
by Janet Whitman, NY Post
Online gambling firms were dealt a big blow yesterday after Europe agreed to settle a trade dispute that could have forced the US to legalize Internet betting.
European online gambling sites, which had to fold their cards in the US last year when Congress passed legislation to crack down on betting over the Web, had claimed they were owed $100 billion in lost profit potential.
The Internet gambling industry was betting the trade war would lead to legally recognized gambling in the US - the largest market for online betting - and allow the sites to open up shop again.
But the odds of that happening look a lot less likely now that the European Union has decided to drop the issue in exchange for favorable trade opportunities in other industries, including sectors such as mail and courier services, research and development and storage.
Hundreds of online gambling sites still operate in the US.
But last year's stepped-up bid by the authorities to stamp out online gambling led legitimate companies such as BetonSports, PartyGaming, and 888 Holdings to close shop in the US, wiping out billions from their stock market values.
The Poker Players Alliance, a Washington lobbying group, is still hopeful Congress will make online gambling in the US legit and regulated.
"This won't be the end of our lobbying efforts just because this decision was made," John Pappas, the group's executive director, told The Post.
The EU, Canada and Japan each reached agreements with the US on the issue.
Still left to settle is Antigua.
The international trade dispute erupted when the tiny island nation claimed the US violated its international treaty commitments by going after offshore online gambling outfits without cracking down on American operators offering remote betting on horse and dog racing.
The World Trade Organization agreed.
In response, the US removed Internet gambling from its WTO treaty obligations, raising the ire of much bigger trading partners, including the EU.
The EU's decision to settle yesterday was a huge disappointment for European online gambling companies, which had hoped the WTO dispute started by Antigua would get them back in the US market.
by Janet Whitman, NY Post
Online gambling firms were dealt a big blow yesterday after Europe agreed to settle a trade dispute that could have forced the US to legalize Internet betting.
European online gambling sites, which had to fold their cards in the US last year when Congress passed legislation to crack down on betting over the Web, had claimed they were owed $100 billion in lost profit potential.
The Internet gambling industry was betting the trade war would lead to legally recognized gambling in the US - the largest market for online betting - and allow the sites to open up shop again.
But the odds of that happening look a lot less likely now that the European Union has decided to drop the issue in exchange for favorable trade opportunities in other industries, including sectors such as mail and courier services, research and development and storage.
Hundreds of online gambling sites still operate in the US.
But last year's stepped-up bid by the authorities to stamp out online gambling led legitimate companies such as BetonSports, PartyGaming, and 888 Holdings to close shop in the US, wiping out billions from their stock market values.
The Poker Players Alliance, a Washington lobbying group, is still hopeful Congress will make online gambling in the US legit and regulated.
"This won't be the end of our lobbying efforts just because this decision was made," John Pappas, the group's executive director, told The Post.
The EU, Canada and Japan each reached agreements with the US on the issue.
Still left to settle is Antigua.
The international trade dispute erupted when the tiny island nation claimed the US violated its international treaty commitments by going after offshore online gambling outfits without cracking down on American operators offering remote betting on horse and dog racing.
The World Trade Organization agreed.
In response, the US removed Internet gambling from its WTO treaty obligations, raising the ire of much bigger trading partners, including the EU.
The EU's decision to settle yesterday was a huge disappointment for European online gambling companies, which had hoped the WTO dispute started by Antigua would get them back in the US market.