The European Union’s top financial regulator described the US legislation on online betting as protectionist and hinted that it may take a legal course before the World Trade organization. The US legislation has prohibited banks and credit card companies to process online bets placed by the US citizens with overseas gambling sites. The EU regulator stated that it is a restraining system and it can be dealt in another forum, clearly indicated towards WTO.
The EU internal market commissioner, Charlie McCreevy, has said that the case could go to the WTO, and further said that he would pursue the case with his American counterparts on a visit to the US scheduled in March. At present, this is unclear that the union will follow the regulator’s threat of WTO action. However, the recent comments have surfaced the stark differences between the U.S. and the EU over gambling restrictions.
The commission’s stance is not new as it has long argued that gambling and sports betting operators should have equivalent rights as that of other service providers. The commission in the past has attacked European countries that place unjustifiable limitations on the industry.
On the other hand, the US has recently launched an intensive regulatory crackdown on foreign gambling and sports betting service providers. The country’s strict anti-gambling provisions have already witnessed a legal defeat for the U.S. at the WTO. The case was filed by Antigua and Barbuda; these two Caribbean islands have a huge internet gambling operations.
