EU to Look Into US Gambling Restrictions

The European Commission launched an investigation Monday into allegations that a US ban on online gambling unfairly discriminates against EU companies. The European Union's executive arm said it would try to find out whether the US restrictions break international trade rules and raise the matter with Washington.

"The US has the right to address legitimate public policy concerns relating to Internet gambling but discrimination against EU companies cannot be part of the policy mix," EU Trade Commissioner Peter Mandelson said in a statement. "We are interested in a constructive and mutually satisfactory solution to this issue," he added.

The Remote Gambling Association, an industry organisation, lodged a complaint in December with the European Commission, accusing the US Department of Justice of discriminating against foreign online gaming operators. In particular, it alleged that the DOJ has sought to enforce a controversial US ban on Internet gaming in the United States by prosecuting foreign operators while turning a blind eye to some domestic rivals, especially for horse betting.

"As the industry trade association, we cannot simply sit on the sidelines and watch while our members, who are already badly bruised by unlawful US acts, suffer the double whammy of being prosecuted for activities whilst US industry is not," RGA chief Clive Hawkswood said.

"By any analysis, the US policy is fundamentally unfair, and we are delighted that the Commission shares our concern and alarm," he added. After a probe likely to run five to seven months, the European Commission can decide to launch a case against the United States at the World Trade Organisation.

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