BRITISH GOVERNMENT SUPPORTS REGULATION OF INTERNET GAMBLING

[Louis Cypher]

WASHINGTON, Dec. 11 /PRNewswire-USNewswire/ -- As the contentious trade
dispute between Europe and the U.S. over Internet gaming industry
continues, the British Government said it favored regulation of Internet
gambling as opposed to prohibition.



"The British Government has signaled quite clearly its support for
regulation rather than prohibition of gambling by the recent implementation
of the Gambling Act of 2005," said Emily Bourne, private secretary of the
British Department for Business Enterprise and Regulatory Reform in a
letter to several financial service and gambling companies.



Europe's trade director and other trade experts acknowledge that
legislation introduced by Representative Barney Frank (D-MA), the Internet
Gambling Regulation Enforcement Act, could resolve the potential $100
billion gambling dispute and bring the U.S. into compliance with
international trade agreements by creating a level playing field among
domestic and international operators.



During a recent visit to Washington, European Union Trade Commission
Peter Mandelson said that the U.S. Congress should either open its market
to overseas operators or compensate Europe for blocking the American
gambling market to European operators. "You will no doubt have been
encouraged to read the recent media reports of Commissioner Mandelson's
visit to Washington, which the Secretary of State thinks reflects the level
of interest at the Commission in the U.S.'s approach to gambling," added
Bourne.



"Rather than negotiating away settlements that could negatively impact
the U.S. economy, the Administration and U.S. Congress should seek a more
sensible policy solution and regulate Internet gambling," said Jeffrey
Sandman, spokesperson for the Safe and Secure Internet Gambling Initiative.
"As the British Government has correctly acknowledged, it is clear that
regulation of Internet gambling is a better approach than prohibition. U.S.
regulation of Internet gambling could bring the country into compliance
with W.T.O. requirements, protect consumers and generate billions in
revenue needed for critical government programs."



The trade dispute over Internet gaming resulted from Antigua's World
Trade Organization (W.T.O.) victory over the U.S. earlier this year. After
the W.T.O. ruled that the U.S. had violated trade rules in barring Antiguan
online gaming operators from the U.S. market, the U.S. withdrew its W.T.O.
obligations with regard to free trade in the gaming area.



The U.S. withdrawal allows Europe and other countries to demand trade
concessions up to the size of the entire sector on an annual basis. Because
the U.S. gaming industry is worth $100 billion, the E.U. theoretically
could seek that amount in trade concessions. Already, the two parties have
agreed to extend settlement discussions twice because they could not agree
on the size of the concessions.



If the parties cannot settle the matter themselves, the E.U. could
demand a binding arbitration before a W.T.O. panel. Separately, Antigua is
involved in arbitration with the U.S. to determine the size of the
compensation due it. Other countries seeking compensation include India,
Costa Rica, and Canada.



About Safe and Secure Internet Gambling Initiative

The Safe and Secure Internet Gambling Initiative promotes the freedom
of individuals to gamble online with the proper safeguards to protect
consumers and ensure the integrity of financial transactions. For more
information on the Initiative, please visit Safe and Secure Internet Gambling Initiative. The
Web site provides a means by which individuals can register support for
regulated Internet gambling with their elected representatives.