Is the UIGEA Worth the Trouble?
The fight against the Unlawful Internet Gambling Enforcement Act (UIGEA) continues on Capitol Hill as the downsides to shutting out other countries access to the online gamblers in the United States could leave the government with a hefty invoice coming from the World Trade Organization.
$100 Billion dollars is the current quote that the US could potentially have to fork over to the EU and other countries to make amends for the law restricting the flow of currency via internet gambling sites. In a time when the economy isn't the strongest, one has to wonder why the government is putting up such a fight to try to restrict access to these sites when they could simply regulate them and profit from it. As Amy Calistri reports in her article for Pokernews.com:
When the US withdrew access to its online gambling market from WTO trade commitments in May, it opened itself up to compensation claims from its trading partners, estimated to be upwards of $100 billion. The lawmakers, headed
by House Financial Services Committee Chairman Barney Frank and House Judiciary Committee Chairman John Conyers, stressed that while the Office of the United States Trade Representative's current position would be "expensive to the U.S. economy," it had even more far-reaching consequences. The lawmakers said, "We are perhaps more concerned about what this withdrawal says about U.S. credibility as a trading partner," and that the US policy would encourage other countries to withdraw trade commitments that were "inconvenient or politically difficult."
Meaning even if the US pays this enormous fine, the backsplash of its unwillingness to work with other countries and just throw money at problems could lead to other more serious trade issues down the road.
All because of some late night law twisting "for the good of the people". Thanks guys.