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The European Union’s British Commissioner for External Trade, Mr Peter Mandelson, is currently in Washington DC pursuing his brief of freeing the global economy and removing unfair trade barriers. He has his sights set squarely on the draconian US Unlawful Internet Gambling Enforcement Act (UIGEA), which has played merry hell with the European online gaming industry since its introduction last year.
The Act virtually denies access to the US market by non-US gaming companies, and has seen the revenues of European operators plummet by as much as 75 percent. At the same time, American authorities have levied fines totalling hundreds of millions of dollars against companies deemed to be operating illegally in the United States, and demanded the return of similar sums invested with these companies by US players.
This double whammy has left some previously thriving EU gaming operators on the verge of bankruptcy, and caused the loss of hundreds of jobs in the industry.
On his arrival, Mr Mandelson issued a statement saying “The EU and the US can only underwrite an open global economy by keeping our own markets open and our own trade fair. We can underwrite a collective approach to shared challenges by making it clear we see no alternative route."
The Commissioner has pulled no punches in accusing the US of defaulting on its World Trade Organisation obligations to allow foreign operators access to American online gaming markets. He is in Washington to press the case for the repeal of UIGEA.
“We need a change in discriminatory US legislation that shuts out responsible European operators,” Mr Mandelson said. “It’s against the interests of American online players to have overseas competitors forced out by protectionist regulatory measures."
Watching from the sidelines are online bingo operators and online bingo halls based outside the USA, who will be hoping Mr Mandelson’s message does not fall on deaf ears. Numerous European online gaming companies have petitioned EU Trade Commissioners, and are pleased that Mr Mandelson has actively taken up their cause.
“When a World Trade Organisation member defaults on its obligations, compensation is due,” Mandelson told reporters. “That’s the situation in regard to online gaming."
Frankly, there are many operators, players and others in the industry who feel the US is behaving just like a school yard bully with its current approach to outsiders!
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