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Public Citizen, Ed Brayton Sue U.S. Trade Rep[ return to main articles page ]

By: Dan
Published on May 23rd, 2008
After the Unlawful Internet Gambling Enforcement Act was pushed through Congress in 2006, the industry has been turned upside down. One area that the U.S. has found itself in hot water is the international arena. The country has already given concessions to Antigua and the European Union over money lost from outlawing foreign internet gambling operators within its borders. In the background, horse racing, fantasy sports, and state lotteries rein supreme online, remaining legal, while internet gambling suffers. In February, Ed Brayton, a freelance writer, requested the details of settlements that the U.S. had entered into. His request was denied, prompting Brayton file suit against the U.S. Trade Representative last week.

The suit specifically asks for the terms of the agreement between the U.S. and European Union. To this request, the federal government responded that the “document you seek is being withheld [because it] is properly classified in the interest of national security,” according to the official complaint, which you can read by clicking here. As expected, this result did not sit well with Brayton, who responded by saying, “the settlement almost certainly entails a substantial financial cost to American taxpayers, either in direct payment as restitution to other nations or as a result of allowing them to enact trade barriers and tariffs against American goods and services in order to balance off the negative effect of our online gambling laws.” The complaint goes on to say that it is “virtually inconceivable that the release of that settlement to the public could possibly harm national security.”

The suit by Brayton requests the amount of compensation plus court and attorney fees. Public Citizen, a non-profit public interest firm, has taken the case. In a press release distributed by Public Citizen, Bonnie I. Robin-Vergeer commented, “Americans have a right to know what kinds of trade concessions the U.S. government is granting other countries, especially when those deals have a significant impact on domestic policy and may be worth billions of dollars. The Bush administration’s decision to withhold the agreement under the Freedom of Information Act (FOIA) has more to do with its desire to prevent public and congressional scrutiny of the settlement before it is enshrined in a new WTO schedule than it does with national security. FOIA requires the agreement’s release.” Robin-Vergeer had no specific comment to PocketFives.com other than Public Citizen had no official stance on internet gambling, but was interested in full disclosure.

The U.S. Trade Representative has 60 days to respond to Brayton’s complaint. It comes just a few months after Congressmen Barney Frank and Ron Paul authored a letter to Susan C. Schwab demanding the details of U.S. agreements with Canada, European Union, and Japan. These agreements likely affected companies in the international shipping industry and jeopardized patents and copyrights by companies like IBM and Disney. The letter states that an argument to withhold details on the basis of national security is unsubstantiated: “If this is merely an attempt to avoid revealing the cost of these trade concessions, either because they would be viewed as too costly by the United States or not costly enough by the negotiating countries, this FOIA denial on the grounds of ‘national security’ would appear to be a misuse of the FOIA process. It is my understanding that, prior to this settlement, some trade experts estimated that the trade concessions could cost the United States many billions of dollars in compensation.” The letter is dated March 14th.

This is the second lawsuit brought against the federal government over the internet gambling issue. The first was filed by the Interactive Media Entertainment and Gaming Association, who is suing to declare the UIGEA unconstitutional. Although the judge in the case disagreed with iMEGA’s arguments, she did grant the organization standing. The case moves on to the Third District Court of Appeals.

With HR 5767, which prohibits enforcement of the regulations of the UIGEA, in Congress as well, it’s shaping up to be an eventful summer for internet gambling. Stay tuned to PocketFives.com for all of the details.

Comments

  1. <p>That the federal government would try to use the excuse of "national security" to hide what they've agreed to shell out in trade concessions is a disgrace.</p>
    <p>Further adding to the already mountainous pile of evidence suggesting that the people in Washington D.C. have not only lost touch with the American people, but are willing to alienate the rest of the global community as well, all in the name of perserving their assinine Sacred Cow, the UIGEA.</p>
    <p>Votes these corrupt, repressive donkeys out and put some new blood in Washington or this crap will just keep getting worse.</p>
  2. <p>Banning online gambling is in no way alienating the people or other countries... that is absurd.</p>
    <p>Many people feel they have been cheated when playing online "regardless if this is true or not" it is their perception. These same people have access to an congressperson or Senator that is voting. </p>
    <p>What has not been done very well is to demonstrate how cheating will be dealt with, how under aged kids will be restricted, how to help addicts, how to track potential terrorist activity, how taxes will be paid, and which government agency will oversee/what enforcement powers they will have.</p>
    <p>IMO Until the people who feel they have been cheated can feel confrontable and say let's move forward with the changes nothing is going to change.</p>
    <p>Another way to look at it... the good people of the USA have let hundreds of thousands of jobs go overseas; Why would the good people of the USA want to let Billions of USA dollars/income/taxes continue to go overseas? How do the good people of the USA benefit?</p>
  3. <p>They will never change... the gov is the reasoon people over seas are burning our flags... </p>
 

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