UIGEA in violation of World Trade Organisation
The American UIGEA (Unlawful Internet Gambling Enforcement Act) which was created in 2006, states that it is illegal for an American citizen to transfer money online in order to gamble. This law does not keep a lot of people from going online and bet some cash in an online casino. A lot of European businesses retreated after the legislation became active on the American market, losing out on a lot of revenue. However PartyGaming and 888.com await possible prosecution for allowing US citizens to place bets on their site. Founder of PartyGaming, Anurag Dikshit, has paid a settlement of 300 million dollars. But, the European Committee believes this is in violation with the rules of the World Trade Organisation (WTO).
An European Union representative said, such laws restrain a free market, and thus is in violation with the WTO rules, who plead for an open market. He did stressed, that despite action through WTO would work, they would rather work with America to find a negotiated solution. “It is for the US to decide how best to regulate internet gambling in its market, but this must be done in a way that fully respects WTO obligations.”According to EU trade commissioner Catherine Ashton. Last year, after prosecution of European executives, and the charge against several investment bankers which gave advice to online casino operators, the Remote Gambling Association ordered the European Commission to investigate, because these actions are in violation with the rules of the WTO.