European online gambling out of luck

Marketplace Staff Dec 17, 2007


Doug Krizner: On the British market, online gaming stocks are among the big losers. Today, the E.U. decided not fight the U.S. ban on Internet gambling. Instead, a trade deal has been struck to compensate European Internet gambling companies for being shut out of the U.S. Our European reporter is Megan Williams.

Megan Williams: The stakes were high, and European online gambling companies lost big. Operations such as PartyGaming and were hoping the E.U. would battle to get them back in the American market.

The companies aren’t commenting — they were banned from the U.S. a year ago, when Congress passed a law keeping foreign gambling outfits out of the U.S. Shares in the European companies dropped, and they appealed to the World Trade Organization to challenge the decision.

In the new deal, the U.S. market remains closed to European gambling outfits. In return, Europe service providers get better access to the U.S. postal and courier, research and development, as well as storage and warehouse sectors.

But the E.U. says it will keep pressing the U.S. for what it calls “a non-discriminatory policy towards Internet gambling.”

I’m Megan Williams for Marketplace.

We’re here to help you navigate this changed world and economy.

Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.

In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.

Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.