The European Commission to Investigate the United States

Contributed by Sue Coyle

The next several months could prove to be rocky for the United States, as the European Commission investigates the U.S.’ treatment of international gambling organizations. The investigation is a reaction to a complaint lodged by the Remote Gambling Association (RGA) alleging that the United States favors domestic online gambling while discriminating against remote organizations. The group claims that European sites are being punished for acts that American sites receive no sanction for. If the European Commission confirms these accusations, the United States will be reported to the World Trade Organization unless a direct agreement can be reached between all parties first.

For the Remote Gambling Association (RGA), either option is fine so long as their goals are met. They want first and foremost for the United States to create non-discriminatory regulations, allowing everyone to apply and receive a gambling license regardless of their country of origin and subjecting all organizations, American or otherwise, to the same rules. The RGA also wants the United States to cease action against deeds committed before the UIGEA was passed. This would even the playing field between European and American gambling sites in the United States, giving all individuals a fair hand.

How the investigation will play out is anybody’s guess, but the fact that it was launched at all doesn’t bode well for the U.S. In a matter of months, the country could have a lot to answer for and even more to make up for.

UK Gaming Act Reviewed

The regulation of the UK gambling market has be incredibly beneficial and prosperous. Making the adjustment across an entire industry has come with a high price tag. For the first quarter of 2007 the cost to begin the transition was already totaling more than 14 million UKP.

The Gambling Commission which employs more than 218 individuals brought the final tally for the first quarter of 2007 to 14.4 million UKP. The commission regulates all of the casinos, bingo halls, lotteries and gaming machines.

The last time the Gambling Commission had significant policy changes to implement, it was 1968, so this past year they had a lot to work on in order to update their systems, policies and employees. As the implication date drew near, the UK Gaming Commission had to recruit new employees and move their primary offices out of London to Birmingham. It is obvious this process is costing the citizens some real pocket money.

Online gaming operators of casinos and poker rooms are having mixed emotions pertaining to the extensiveness of the Gambling Commission's authority in the online gaming industry. Although many countries and companies based outside Europe and the UK have been white listed to entertain and cater to the UK population, there have been obstacles to the process. Some of the companies are being forced to become licensed separately with in the UK. Some gaming companies and online poker rooms have even moved to tax haven islands to avoid the 15% tax being applied to the off shore companies. Additionally the new laws require all small stakes poker leagues across the UK to become licensed as casino's. This hurdle will cause the corner pub to stop offering the card game in league or tournament format, thus their draw will decrease significantly with the end of the live poker events.

To back up the new policies, the Gambling Act has an outline of specific codes, practices, and guidelines that will force online operators and others to comply with the position. The date for complete compliance was Jan. 1st 2008. The natural alternative is court rendered prosecution as well as imposition of limitless fines. Keep in mind this act came with both beneficial applications as well as obstacles. It will be a year in September 2008. At that time there will be clear indications as to the full impact the new laws will have on the online gaming market.