EU gives US time to pay gambling debt

The EU has given the US a further eight weeks to propose compensation for the restrictions it imposes on foreign gambling firms.

The World Trade Organization (WTO) ruled earlier this year that an American ban on foreign operators was illegal, after a challenge by the Caribbean twin-island nation of Antigua and Barbuda.

The US responded by withdrawing global trade commitments on gambling made in the mid-1990s. Under WTO rules, member countries can now seek compensation for the unilateral withdrawal.

The deadline for a decision on compensating the EU was 22 October but the EU has decided to wait until after WTO arbitrators have ruled on levels of compensation that should be offered to Antigua and Barbuda.

That decision, to be announced on 30 November, would clarify the levels of compensation that the EU should be seeking for lost revenue and business opportunities resulting from the ban.

Antigua is currently seeking $3.4 billion (€2.4bn) in compensation. EU losses are estimated at tens of billions of euros.

Naotaka Matsukata, a Washington-based lawyer who is representing online gaming interests, criticised the delay and said that Peter Mandelson, European commissioner for trade, should denounce the US’s "blatant protectionism".

The EU has given the US a further eight weeks to propose compensation for the restrictions it imposes on foreign gambling firms.