The UIGEA was passed over two years ago by the United States Congress when it was hidden inside a bill supporting port security, allowing it to proceed without proper debate and investigation. Since then, the law has caused legitimate businesses in the online casino industry to withdraw from the US market, while allowing a black market, in which consumers are helpless, to grow.
Now Norway has decided to emulate the United States, enacting its own version of the UIGEA. As in the US, outcry has come from every direction regarding implementation of the program. Bankers call the law unworkable and a competitive disadvantage, and civil libertarians are horrified.
Further, international law experts are concerned that the Norwegian law may violate or conflict with obligations the nation has to the European Union. The Remote Gaming Alliance has already filed a complaint with the European Free Trade Association.
The Norwegian measure makes assisting online gambling sites, for instance by processing transactions, a violation of law. Only the state-owned gambling services, including the lottery, are legal.
Once again, a government body tries to protect its competitive advantage through the harsh use of law, rather than trying to provide a superior project. If Norway wants to ensure government revenues, perhaps it should provide the best and most varied gambling available, rather than legislate competition out of existence.
Published on December 12, 2008 by EdBradley
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