European Union may enter WTO case

The World Trade Organization has issued a preliminary ruling backing Antigua and Barbuda in its trade dispute with the US over online gambling, the Financial Times reports. That's led to speculation that the European Union may enter a complaint of its own. European Commission internal market commissioner Charley McCreevey added fuel to the fire today, with comments that suggest he is considering entering the fray. Industry supporters have long accused European gaming interests of hiding behind Antigua and Barbuda. If the EU were to enter a complaint of its own, the dispute would be out in the open.

Illinois sell-off raises social policy issues

Illinois has formally opened bidding for the state’s lottery, the New York Times reports. Illinois expects to make as much as $10 billion from the sale. The deadline for bidding ends February 22. The sale would mark the first such privatization in the US, where all lotteries have been state run since the early 20^th century. All of a sudden, even state lottery critics are beginning to see the light. “Taking lotteries out of state hands could raise tricky social policy issues," the Times reports, as private operators will be interested in maximizing revenue with no regard for the "duty of care" exercised by publicly elected officials. We hear you, Illinois: If there's one thing worse that the state being involved in gambling, it's the state not being involved in gambling...

Bank subpoenas hit gaming stocks

The US Justice Department has issued subpoenas to four major investment banks demanding information on the activities of the online gaming industry. That’s caused the shares of several gaming companies to fall sharply on the London stock exchange, the New York Times reports.

The banks all took part in initial public offerings of UK-based gaming firms. HSBC, Credit Suisse, Deutsche Bank and Dresdner Kleinwort said yesterday that they have received notices from the the Justice Department’s New York office.