The political drive to legalize online gambling in the USA received a boost last Friday as European officials used a summit at the White House and meetings with members of Congress to elevate visibility of the transatlantic trade dispute over the Unlawful Internet Gambling Enforcement Act (UIGEA). EU Trade Commissioner, Peter Mandelson, pressed the case for a political solution to a dispute triggered by passage of UIGEA and wiped billions of dollars in value from EU online gaming operators. The EU, along with six other hard-hit trading partners, have filed claims against the U.S. after it lost a case Antigua brought to the World Trade Organisation (WTO) and the U.S. then chose to withdraw online gambling from its trading treaty. But the two sides have been unable to agree alternative compensation in the form of greater market access to other US industries like higher education and technical services. Mr Mandelson also lobbied congressional leaders to lift the ban in meetings on Capitol Hill, including a closed-door session with Barney Frank, the chairman of the House financial services committee. Nao Matsukata, former director of policy planning for US Trade Representative Robert Zoellick, now senior advisor at Alston and Bird commented, "His (Mandelson's) willingness to meet Barney Frank suggests that he is open to finding a legislative solution to the problem. The meeting on Friday initiated a mutually supportive effort to resolve the unfortunate decisions of the United States to withdraw from its GATS commitments, and should help create positive momentum for the Frank legislation on Capitol Hill." Mr Frank said on Friday the EU's involvement in the dispute made it a "big WTO issue", raising the possibility that lawmakers who are focused on trade could become more involved in the gaming dispute. "I would hope that some of the pro-trade people will be consistent in their view [that the US must fulfil its WTO obligations]," Mr Frank said. But he said he could not predict the impact Mr Mandelson might have on the political support in Washington. Pro-gaming lobbyists say the legalisation of online gaming could raise between $6 billion and $25 billion in tax revenue at a time when Democrats are desperate to find new sources of income to fund their spending priorities. "I'm hoping to get support from three sources. [Those who seek] potential tax revenue, [those who believe it is] consistent with WTO obligations, and my main motivation – let people gamble if they want to," Mr Frank says. Still, Frank's proposed legislation faces big hurdles. Several sports leagues, including the powerful National Football League, are staunchly opposed to Mr Frank's bill because it would legalise online sports betting. One person who has tracked the legislation says he did not believe the proposal would pass as long as it was opposed by the NFL.
