Sportingbet Chief Executive Nigel Payne told the BBC Radio that the US clampdown was simply “overt protectionism” against non-US online gambling operators.
Payne said the Unlawful Internet Gambling Enforcement Act hits non-US operators, while it includes carve-outs for a number of online gambling activities based in the US, specifically, US internet horse racing, US internet lotteries, US fantasy sports, intra-state betting and intra-tribal betting.
“What in fact is happening is overt protectionism going on between the United States and the United Kingdom,” he said. “And it\’s somewhat disappointing that the European Union and the UK government seem somewhat disinterested in protecting the UK companies.”
“This represents protectionism and is in contradiction of the World Trade Organisation ruling in the US versus Antigua and Barbuda case,” added analysts at Dresdner Kleinwort.
Sportingbet said it was examining whether the Act is in violation of US commitments under the General Agreement of Trade and Services.
Both Sportingbet and rival 888 said they expect the World Trade Organisation to take a look at the US ban.
According to Ron Mendelson of OffshoreXplorer.com, the WTO will be key to implementation of the UIGE ACT.
“Not only has the US failed to comply with the WTO ruling, they seem to have gone the other way. They have even gone so far as to arrest foreign citizens on US soil on charges that relate to the online gaming industry,” said Mendelson.
It is interesting to note that the United States have recently asked for help from the WTO with regards to a dispute against China, which is discriminating against imported auto parts in clear violation of its WTO obligations. This sounds very much like the charges brought against the US by Antigua.
“Why does the US think they can ignore a ruling made against them and then expect aid in a similar case when they feel they have been the ones who were wronged,” asked Mendelson.
Good question…