US-Facing Online Gambling Relieved by EU-US Deal

The United States and European Union have been negotiating since the EU filed compensation claims against the US in June of 2007, following a WTO ruling that the US was in violation of it's trade agreement in regards to online gambling.

Negotiations came to an end Monday, December 17, when the EU, instead of increasing pressure on the US to open it's Internet gambling markets, opted for trade concessions against the US, allowing new opportunities for EU trade in various US sectors.

The US-facing Internet casinos, poker rooms and sportsbooks have expelled a virtual sigh of relief upon the news. While many online gambling operators were hoping for US regulation, the 'little guys' who are still accepting US players at their online gambling sites do not feel the same way.

According to one of the industry's largest US-facing operators, "Regulation would be bad for our industry. As soon as Vegas and the European big boys move in, we are pretty much toast."

While online gambling operators located in the UK and Europe have closed their doors to US customers, those located in more remote areas, especially Antigua, Costa Rica, Kahnawake and Panama, have generally opened their arms to welcome US players. The decision is thus far an enormously lucrative one for these companies. To suddenly find themselves competing against the likes of Ladbrokes, William Hill or even the MGM Grand would be an overwhelming blow to their current success.