Lawmakers urge US stop action vs EU gambling firms

Submitted by Guest on

Written by :

Guest

Published on :

WASHINGTON, Aug 7 (Reuters) - Two U.S. lawmakers have urged the U.S. Justice Department to suspend its investigation of European Internet gambling companies for possible criminal violations that occurred before Congress passed a law in 2006 to crack down on online gambling.

Rep. Robert Wexler, a Florida Democrat, and Rep. Steve Cohen, a Tennessee Democrat, warned U.S. Attorney General Michael Mukasey in separate letters the issue could lead to a potentially damaging trade spat between the United States and the European Union at the World Trade Organization.

"In all likelihood, this issue will escalate and I understand could result in WTO action focused specifically on how the U.S. government enforces its laws. I cannot see how that can be in the interests of this country," Wexler said in a letter to Mukasey on Wednesday.

European Internet gambling companies lost billions of euros in market value after Congress moved to shut down the U.S. market by making it illegal for banks and credit card companies to make payments to online gambling sites.

Many publicly traded European companies, such as PartyGaming(PRTY.L: Quote, Profile, Research) and 888.com (888.L: Quote, Profile, Research), withdrew from the United States after Congress passed the Unlawful Internet Gambling Enforcement Act in 2006, but have continued to face possible criminal prosecution for activities before then.

That prompted the European Commission to launch a formal investigation in March into whether Washington was singling out EU companies for enforcement actions, while allowing U.S. online firms to operate freely.

Cohen, in a July 29 letter to Mukasey, said the Justice Department still had not given a good reason why it was investigating "foreign operators who respected congressional intent in 2006 and withdrew from the market, while U.S. companies continue to operate uninterrupted."

EU Trade Commissioner Peter Mandelson urged the Bush administration in June to "freeze" any Justice Department action until the EU had completed its probe.

An EU team plans to visit Washington in September as part of its investigation. An earlier scheduled visit in July was delayed at the United States' request.

Related Content

Bally's Halts Chicago Casino Construction as Company Reports  $792 million in Revenue....$4.5 billion in DEBT?

Bally's Halts Chicago Casino Construction as Company Reports $792 million in Revenue....$4.5 billion in DEBT?

The company reported roughly $265.9 million in negative operating cash flow during the first six months of the year.
Two Six Figure Jackpots in One Day Hit at Thunder Valley Casino Outside of Sacramento

Two Six Figure Jackpots in One Day Hit at Thunder Valley Casino Outside of Sacramento

Two six figure jackpots in one day and multiple jackpots hit over the course of a few weeks at a single Sacramento area casino.... We're talking the Thunder Valley Casino Resort, a mere 30 miles outside California's capital city.
RealPrize, Lone Star Sweepstakes Casinos Exit Delaware Market

RealPrize, Lone Star Sweepstakes Casinos Exit Delaware Market

Customers at RealPrize and LoneStar have until September 22, 2026 to withdraw all funds if they happen to reside in the state of Delaware.
Trial to Move Forward in MGM Grand Las Vegas Ketamine Case

Trial to Move Forward in MGM Grand Las Vegas Ketamine Case

Prominent sports agent Dwight Manley claims he was involuntarily drugged with ketamine while playing blackjack in the high-limit area of the MGM Grand in Las Vegas in December 2021.