When it comes to international trade disputes, the US is usually on the free market side while Europe is more likely to be protectionist. The European edition of The Wall Street Journal points out that the roles are reversed when it comes to US interference with the operations of foreign online wagering services. The European Union is not pleased that the US has exceptions for domestic operators like horse betting sites, state lotteries, and the like while it looks to snuff out the opportunity that Americans have to wager with similar services overseas.

The EU has a winning case here, and the trading partnership and diplomatic relations with Europe is infinitely more important to the US than America’s relationship with Antigua, who prevailed with the World Trade Organization against the US last summer in a similar case, the results of which have largely been shrugged off by the US. The hundreds of millions of dollars in value erased from overseas stock markets when publicly-held foreign firms left the US wagering market leaves a bitter taste in the mouths of the European business community, giving the Europeans some resolve in the matter.

With the banks clearly not pleased to be playing “gambling transaction cop” as required by the Unlawful Internet Gambling Enforcement Act, Congressman Barney Frank’s proposal to exempt licensed operators from US regulations may be the long term solution. While it is unlikely that ads for online poker rooms and sports books will be flooding the airwaves anytime soon, things may be on the upswing for bettors in the US.