U.K. Government Seeks 'International' Laws to Protect Online Gaming

Jowell is on Tuesday leading an international summit at Royal Ascot, the famed horse racing track, in the English countryside, near Berkshire, frequented by royals and the global glitterati, and founded in 1711, as delegates from 30 countries meet this week on international gaming standards, as well as methods for protecting players and keeping the industry well-regulated. Secretary Jowell said international online gambling companies would be "welcome" to operate in Britain.
According to Brussels-based lawyer, Herbert Smith, of the firm Craig Pouncey, the Unlawful Internet Gambling Enforcement Act of 2006 was passed in "complete disregard" of U.S. obligations under international law.
"When read outside its complex factual context, the act is a peculiar piece of legislation," said Smith. "On its face it does very little, primarily because it does not define what 'unlawful Internet gambling' is? In essence, the 2006 act only covers Internet gambling that was already illegal under state or federal law."

WTO Problems

The act, what is more, makes the U.S. even more out of compliance with its World Trade Organization (WTO) obligations than ever before, he said. The loss of the dispute settlement case brought by Antigua earlier was a set back for the U.S., which it has been given time to remedy. "In that case the WTO Appellate Body found in April 2005:that the U.S. had made specific commitments under the General Agreement on Trade in Services to provide market access and non-discriminatory treatment for gambling services supplied cross-border from other WTO members; that the U.S. prohibition on the use of the Internet to supply cross-border gambling services violates the U.S.'s obligations, said Smith.

A WTO panel is now probing whether the U.S. has complied with its other WTO obligations.
But, said Smith, the new law, has made U.S. non-compliance "considerably worse." By making it completely clear that the U.S. does not oppose Internet gambling, but only Internet gaming that crosses the border of a state, the act demonstrates that "public interest concerns" can be addressed by regulation and technology. "The act explicitly preserves the de facto exemption for Internet betting on horse races," said Smith.

Companies, however, do not have the legal right to petition the WTO. Only governments do, said Smith. To counteract Bush and his zealous, religious right cohorts, who are desperate to retain their slim lead in the Congress, and are pandering to their constituents, two leading online poker and casino firms, PartyGaming and 888 Holdings, have held talks about a £1.6bn merger as the industry scrambles to replace revenues lost through the U.S. attack on Internet gambling.

PartyGaming's CEO, Mitch Garber, told reporters that consolidation was the "most sensible way forward" ; and then, Garber informed analysts he was in talks with several companies. These talks between PartyGaming and 888 are said to be at an early stage.
 

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