Antigua Slams US Over Restrictions On Internet Gambling

Antigua Slams US Over Restrictions On Internet Gambling



GENEVA (AP)--The tiny Caribbean nation of Antigua and Barbuda slammed the U.S. on Tuesday over its restrictions on Internet gambling sites based overseas and asked other countries to join in seeking compensation from Washington for its failure to comply with global trade rules.

Antigua, the smallest country to successfully litigate a case in the World Trade Organization's 12-year-history, also threatened to target U.S. trademarks, copyrights and telecommunications companies after the WTO Tuesday formally adopted a landmark decision in March that the U.S.'s continued restrictions on online gambling were illegal.

"Not only do we think that members should press claims for compensatory adjustments as a matter of economic self-interest, but we also believe it is important that the process is made as difficult as possible for the United States," Ambassador John Ashe of Antigua told the WTO's dispute settlement body.

The gambling dispute is threatening to become one of the most complicated the WTO has ever handled and could soon spark a series of compensation negotiations between the U.S. and other trading powers such as the European Union.

After losing the case, the U.S. announced that it would take an unprecedented legal step to change the international commitments it made as part of the 1994 GATS treaty regulating the trade in services among the 150 members of the WTO. As a result, the U.S. declined to challenge Tuesday's adoption of the Internet gambling ruling, because it says that its legal maneuver effectively ends the case.

Juan Millan, a U.S. trade lawyer, told the Geneva-based trade body that the procedure - which no government had previously used to avoid a WTO ruling - was invoked "in order to bring the United States into compliance and to resolve this dispute permanently."

"This modification will ensure...the original U.S. intent of excluding gambling from the scope of U.S. commitments," he said.

The U.S. argues that it is also exempt from negotiating compensation to governments - as required in the GATS clause allowing countries to rewrite their services commitments - because Internet gambling was never explicitly mentioned in the negotiations of the early 1990s.

The March ruling upheld the U.S. right to prevent offshore betting as a means of protecting public order and public morals. But it said it was illegal to target online gambling, without equally applying the rules to U.S. operators offering remote betting on horse and dog racing.

Brazil and India on Tuesday both said the U.S. was obliged by law to compensate Antigua if it wants to now redefine its services obligations. The E.U. questioned how the new clarification of the U.S. ban on online betting would eliminate the discrimination that allows for U.S. companies providing offshore betting on horses and other services to remain in business......

There's more... Outdated URL (Invalid)to the NASDAQ article
 
I have heard the same about Costa Rica from an unrelated private source. This dinner did take place and the decision was disclosed there.

Seems reliable - we'll see.
 
I'm a bit worried about how this is unfolding... I think there are two scenarios one bad and one good.

The good scenario is that the US backs down and reopens it's markets to gambling sites. I think this is looking like an increasingly slim possibility.

The bad scenario is that the US is going to dig in its heals and go all out over this. If the US ends up paying compensation or opening other sectors, the chances, after all the trouble, of gaming then coming back are pretty much ZERO. Particularly as it seems India and the EU (and I'm assuming Japan) don't give a rat's ass about gaming and want to open some sectors that will benefit "other sectors" which most likely means they are looking for some benefits for cronies of the decision makers.

Also, it could generate a backlash of nationalism on both the right and left and make a lot of important people hostile to online gaming in the U.S. The US likes to get its way and these folks are really arrogant.

My read on all this is these developments probably aren't good if the goal is to get gaming back in the US. It's good news if the goal is just to lash out a parting shot at the US.

My 2 cents.
 
That's one scenario.

Another is that the US opens up trade in certain industries that have heretofore operated unfettered as monopolies. This will pixx these industires off and they will want UIGEA to go away instead.

The more people get pixxed off, the better.
 
im not arrogant.
You're a Bush administration official??? Good God, Casinomesiter has been infiltrated!

Well, I think the US would make a decision whether to go forward or not before getting to the point of pissing off US companies as I'm sure they have a good idea about who's going to get pissed. I think there is is a slim chance though at this point. I guess another scenario is to open up or ban horse racing... it looks like this whole thing is over unequal access to horse racing only... with repect to poker, casinos, sports betting and such, US law is even handed... no one can do it.

I'm pretty disapointed in Britain. They should do a lot more behind the scenes negotiating as they took the biggest hit on this. Antigua looks like they are the only ones really interested in what happens to gaming at this point.

I guess the deadline is about up... so who else joined in?
 
Interesting if rather pessimistic view, but it is missing one important point and that is the size and potential of the US online gambling market.

I doubt that the big American (land) gambling companies will for ever discard the $6 billion present and huge potential value of online gambling, and this is an influential sector with growth ambitions at state and national levels.

As the PPA said yesterday in a public statement, the most elegant solution here is probably to go for the Frank proposal to genuinely regulate and license.

Personally, I think there needs to be an intervening step before that in the form of approval for an independent enquiry into all the implications of regulating and taxing online gambling in the USA, including the current and likely levels of exclusion technology.

I think such an enquiry is necessary to keep the AGA onside, convince ignorant politicians and keep the regulation issue front and centre in the USA.

The horserace, state lottery and national sporting bodies in the States are hugely influential as we have seen, and I don't see them giving up their cosy carve-outs without a fight.
 
Something we all tend to forget is that UIGEA explicitly hands the individual states complete autonomy.

Efforts need to be concentrated on the state level.

Once one state steps forward and regulates online gambling, others will follow suit.

Many states already depend on the lotteries to fill budget gaps. It's not enough, and the majority of states would greatly benefit from regulation.
 
Another side of this issue to consider.

The UIGEA is out and out a BAD law, with flawed legal logic that restricts the freedom of Americans while giving the Banking business unprecedented power and unprecedented access to information on business and personal finances.

When most people in the USA begin to realize scope and power of the UIGEA, they are against it.

In less than 10 days the US Banks will have the ability (responsibility) to CONTROL all financial transactions inside the USA and any other country that relies on the US banking system (like Canada & Mexico). Before the UIGEA, all the banks did was facilitate financial transactions... After the UIGEA takes effect, the Banks will totally Control all financial transactions inside the USA.

The UIGEA is in fact the biggest shift in US Financial policy since the Federal Reserve Bank (a Privately Owned Banking Company) was created and put in charge of making US money and controlling the US interest rates.


<daily rant>
If you consider how this UIGEA law was passed... In the middle of the night, on the last day in power for the Senators involved (actually the last minutes in power) The slimy Senators involved used parliamentary tricks to pass a Bill that not one other Senator or Congressman had even read... And then consider that this so called "law" is one of the most sweeping draconian changes to US Banking system in 75 Years... It makes you realize that Democracy in America is truly broken.
</daily rant>
 

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