by Hillary LaClair, Senior Editor
December 17, 2008
The U.S. litigation against online poker room founder, Anurag Dikshit, has caught the interest of the UK-based Remote Gaming Association, which is exploring its legal options with the World Trade Organization. The RGA intends to bring U.S. representatives before the European Commission on yet another count of WTO violation, and discriminatory action toward overseas gambling establishments.
The RGA has released a statement in response to the $300 million settlement reached between Dikshit and the U.S. Department of Justice. “This is the first time this Act has been applied to internet gambling beyond sports betting. Despite never offering sports betting and ceasing to accept US customers for its poker and casino games when the still-controversial Unlawful Internet Gambling Enforcement Act 2006 was passed, United States District Judge Rakoff accepted the plea of Mr. Anurag Dikshit and a fine of $300M,” the statement read.
“The events show that the outgoing US administration and the Department of Justice have demonstrated a total disrespect for the legal rights of European online gaming companies and those associated with them and a complete disregard for US internation commitments under GATS.”
This is not the first time that the U.S. has had to answer for its actions against overseas online gambling websites. Numerous disputes have been brought before a legal body, with arbitration from the WTO, challenging the U.S.’s favoritism shown toward domestic online horse racing websites and national lotteries. Antigua, Barbuda and Costa Rica have argued that the U.S. ban on internet gambling is in fact illegal and in direct violation of international free trade agreements. Although rulings have been made in favor of gaming websites, the U.S. continually fails to reply.
Clive Hawkwaswood, Chief Executive with the Remote Gaming Assocation, noted the sort of blasé attitude that U.S. representatives have taken toward a formal request made in June to cease litigation filed against European gaming companies.
“Mandelson suggested that the prosecutions stop until a proper dialogue could take place so as to avoid unnecessary escalation of the dispute at a atime when the EU had already launched an enquiry into US actions following an RGA complaint made under EU Trade Barrier Regulations,” said Hawkswood. “Not only has that request remained unanswered, but now the US authorities, it seems, have succeeded in pressuring a major shareholder into making a deal. A major line has been crossed and it could set a very worrying precedent.”
Hawkswood commented that because Party Gaming has fully complied with UIGEA regulations since their implementation and prior to that, U.S. legislation against online sports betting, they should not be targeted for enforcement of U.S. gaming laws in relation to online poker.
“The company is listed on the London Stock Exchange, is fully licensed and in EU jurisdiction, was among the very first to cease accepting US customers when the Unlawful Internet Gambling Enforcement Act passed, has never offered sports betting to avoid violating US law and has cooperated fully with the US authorities,” Hawkswood continued. “More generally, it has been closely involved in a whole range of industry initiatives that have served to improve the reputation and accountability of the sector as a whole.”
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