On Monday, officials from the United States and European Union met to discuss online gambling, among other issues. According to the European Union, the US passing the Unlawful Internet Gambling Enforcement Act (UIGEA) in 2006 was a violation of trade agreements between the US and the EU. The EU conducted an investigation into the matter that resulted in sending a letter to the US earlier this year. The United States has been avoiding the issue for a while, but as officials from both bodies met on Monday to discuss the matter, it seems that both sides want to resolve the conflict.

EU Trade Commissioner Catherine Ashton stated that Monday was a day to “set out the approach we are going to take, who would do that, and agree to keep in touch.” Both sides are looking for a solution that does not hurt them or hinder foreign relations. The US and EU met to discuss four areas of their trade agreement, with online gambling being one of the four. Ashton and US Trade Representative Ron Kirk will attempt to resolve the disagreements in the coming months. If they cannot come to a compromise, the issue will then be taken to the World Trade Organization (WTO), of which the US and EU are members.

The EU doesn’t want to miss out on the money, $14 billion in 2007, generated by online gambling. With many online gambling sites in foreign countries attracting customers in America, legislation passed by the US to ban “unlawful” online gambling affects foreign markets. Back in 1994, when the United States signed the General Agreement on Trade in Services (GATS), they failed to put gambling on the list of exemptions from the free trade provisions. Though the EU has no authority over US law, the WTO has authority over international trade agreements between the two bodies. The US may have to either amend the law or provide monetary compensation to the EU. There was a similar dispute in 2003, when Antigua challenged that UIGEA violated their trade agreement with the United States. The WTO ruled in favor of Antigua.

Regardless of how it turns out, it seems that the days are numbered for UIGEA, which is also under attack in a lawsuit filed by the Interactive Media Entertainment & Gaming Association (iMEGA) and in legislation introduced by Representative Barney Frank.