After months of negotiations, the European Union and the United States have finally signed a compensation deal over the US’s policy on online gambling.
The sides had until Friday of last week to reach a deal, after which it was expected that the European Union would have asked the World Trade Organization to step in and allow an arbitration panel to decide on the case.
At the last minute, it was announced that a bilateral agreement had indeed been reached. The two sides signed the agreement in Geneva, in which it was decided that the US would open certain trade markets to EU suppliers as compensation for not allowing online poker and casino companies to operate in its local gambling market. The sectors that will allow EU traders include research and development, postal and courier services, testing and analysis services, and storage and warehouse services.
The European Union clamped a compensation claim on the US after the United States latter withdrew from its World Trade Organization commitments regarding betting services and online gambling. While the treaty, entitled the General Agreement on Trade and Services, allows signatories to withdraw from their commitments, it also allows others to make compensation claims if they feel that their interests were affected by the decision.
The new compensation agreement was not met with positive reactions by all. Representatives of the online gambling industry in Europe originally pressured the European Union to demand the full $100-billion unless it changed its online gambling laws, instead of compromising with trade matters. They were naturally disappointed with the outcome of Friday’s deal but stated that they were not surprised with the decision.
“We’re hoping this isn’t the last word on the subject”, said the Chief Executive of the Remote Gambling Association, Clive Hawkswood.
The European Commission stated that while the trade agreement was a good breakthrough in the case, it would still be seeking a non-discriminatory policy that would allow anybody to operate within the US ’s gambling market. The EU and the English government have regularly encouraged to do away with its Prohibition policy and adopt a more lenient, albeit regulated, approach to online gambling.
Meanwhile, Antigua continues to await the WTO arbitration panel ruling on its own compensation claim case, that was due to be given on Friday, but was delayed due to technical reasons. Antigua seeks $3.4-billion in compensation, while the has agreed to pay no more than $500,000.
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