Online gaming firms take action

Dec 20, 2007 13:27 GMT  ·  By

The European online gaming companies are filing a formal complaint against the United States for discrimination after their controversial exit from their market. The firms claim that the US Department of Justice has violated the international trade law when they took legal actions against them leading to an eventual kick out of the market.

This move comes only a few days after the European Union agreed a trade deal with the United States to compensate the losses they recorded during recent times. The gaming firms were forced to stop doing business in the US market, following a change of rules that was made last year.

"We have been left with no choice but to pursue all legal avenues available to challenge the US Department of Justice for its discriminatory enforcement activities against European online gaming operators," Clive Hawkswood, said the CEO of the RGA.

The companies that filed this complaint include PartyGaming, 888.com and Sportingbet and they stated that even though the US decided that all forms of online gaming are illegal, they only acted against European companies. On the other hand, the Department of Justice has threatened and carried out legal action against European firms.

"How would US investors and businessmen feel if they invested in a business in the UK based on international law commitments, and then suddenly the UK not only passed new laws forcing them to shut down their business but tried to throw them in jail for past activities, while still allowing their domestic competitors to continue on doing the same thing?", said Hawkswood.

It was last year when the United States of America Congress made payments to online gambling sites illegal, declaring that they will exclude gambling services from market-opening commitments it made as part of a 1994 world trade deal. However, the RGA want this problem solved as soon as possible.