U.S. faces $100 billion fine for banning online gambling

The United States opposes online gambling, and Europe is pissed about it. WTO member nations on The Continent are seeking $100 billion (with a “b”) in compensation.

The World Trade Organization has the authority to levy fines against member states that pass laws that interfere with what the organization considers “free trade.”

Earlier this year, the U.S. passed the the Unlawful Internet Gambling Enforcement Act (UIGEA). The West Indian island nation of Antigua and Barbuda complained to the WTO about the new restrictions, and the organization ruled against the U.S.

The European Union seeks compensation equal to the size of the entire US meatspace and online gambling market, estimated at US$100 billion.

If the U.S. decides not to pay the fine, it could undermine the World Trade Organization. The European Union, India and five other countries have filed notice that they intend to seek compensation.

Progressive U.S. Congressman Barney Frank has introduced a bill to overturn the UIGEA. “The existing legislation is an inappropriate interference on the personal freedom of Americans and this interference should be undone.” The bill also provides for taxation of online gambling.