Like many have said since the passage of the United States' Unlawful Internet Gambling Enforcement Act, the European Commission has ruled that the U.S. broke World Trade Organization commitments.

According to a report from Reuters, the EC came to the conclusion in a draft report and findings are being welcomed by many, including some in the United States.

Barney Frank, the House financial services committee chair, has always championed online gambling in the United States and he said that his country has been a bit hypocritical.

"I'm struck by the people who think we have to abide absolutely and religiously by the WTO . . . but when it comes to banning gambling and the WTO, they ignore it," Frank told Reuters.

Passed in 2006, the UIGEA made it illegal to pay for online gambling transactions through American financial institutions, credit cards and bank transfers.

While many European online gambling companies offered services to the U.S., the PartyGamings and the 888s withdrew after the passage of the legislation but still face prosecution retroactively.

"The report finds that U.S. laws on remote gambling and their enforcement against EU companies constitute a barrier to market access on EU economic interests," stated the European Union in a summary.

"Furthermore, EU companies are discriminated against: U.S. companies are allowed to freely operate online gambling on horse racing in the U.S., while European companies and individuals cannot and even face legal action."

Despite the report's findings, the European Union hopes a hassle-free resolution can be reached.

"It is for the U.S. to decide how best to regulate Internet gambling in its market, but this must be done in a way that fully respects WTO obligations," EU Trade commish, Baroness Catherine Ashton said.