7 NATIONS FILE COMPENSATION CLAIMS AGAINST THE U.S.A.

29 June 2007

Canada and Australia join earlier nations in filing for compensation on WTO withdrawal by America

It appears that Canada, Australia and Macau-China have joined Antigua and Barbuda, the 27 nation European Union, India, Costa Rica, Macau and possibly Japan in considering compensation claims against the United States following its unilateral and unprecedented decision to remove gambling from its decades-old World Trade Organisation trade obligations (see previous InfoPowa reports).

The Casino City information site this week reported that "...an official familiar with the case said compensation claims by Antigua and Barbuda, the EU, India, Costa Rica, Canada, Macau and Australia were made last week in response to America's decision to exclude online gambling from its General Agreement of Trade in Services Agreement (GATS) schedule."

Japan has also lodged a letter of interest in the case, but has not asked for compensation, the official told the gambling information site. "It's rather premature to say how things will proceed from here," the source added.

The government of Antigua and Barbuda is seeking $3.44 million in compensation. A Costa Rican official has confirmed that his country is also seeking compensation, but declined to offer details of the claim.

The Americans have so far indicated that they do not think that compensation is due, but have taken a softer line on the Antigua and Barbuda issue which ignited the WTO confrontation, hinting that the door to further negotiation may still be open.

It is thought highly unlikely that the US will remove its "carve-out" discriminatory policy that allows horse racing, state lotteries and fantasy gaming in the USA to operate over the Internet, however. This is at the heart of the dispute, as other forms of Internet gambling have been attacked through a law that imposes financial transaction bans with online gaming companies.

Online Casino News courtesy of InfoPowa