Online gambling case pits Antigua against U.S. and challenges WTO

[jetset]

Update

WORLD TRADE DISPUTE LATEST

Further hearing scheduled in Geneva this week

The bureaucratic process involving fair compensation for WTO nations that have been impacted by the withdrawal of the United States' treaty obligations on gambling rumbles on, with the news that further hearings will take place later this week in Geneva.

Antigua's Minister of Finance Dr. Errol Cort told the Antigua Sun newspaper that he is waiting on the outcome of the first session of a WTO hearing in Geneva which is scheduled for this Thursday before fixing a meeting at the US Trade Representatives office.

At that session, the WTO panel will hear verbal submissions from both the U.S. and Antigua and Barbuda governments and will get the chance to pose questions based on the arguments raised by both sides regarding compensation.

The arbitration panel is expected to enter the phase of deliberations after which it will rule on the matter of compensation for Americas failure to comply with the earlier rulings of the WTOs Dispute Settlement Body.

Cort said that after this meeting, he will be in a better position to address the issue as to exactly what position the country will take when he meets the USTR.

I must say that I wanted to await the outcome, the opening session for the panel that has been set up to hear our further dispute at the WTO on Thursday, Cort said. So, I am still hopeful that we will meet when I get to Washington but I am awaiting initially the first impressions from our representatives in Geneva at the end of the first day of the hearing of the tribunal on Thursday.

On 8 Oct., Cort addressed the U.S. opposition of Antigua and Barbudas claim. In a submission filed with the WTO last month, the United States argued that the US$3.4 billion claim was exhorbitant and wildly out of line with any realistic figure.

In return, the U.S. has proposed $500 000 as more reasonable. Last week in several press interviews, Antigua's legal representative said that the US$ 3.4 billion claim had been arrived at in serious and professional consultation with international economics experts and could be substantiated.

The finance minister has reiterated his position that the government hopes to be able to sit with representatives of the U.S. and examine the issue of compensation for the losses it suffered by way of taxes and employment generation from the thriving online gaming sector.

 

[SlotsWizard]

...the U.S. has proposed $500 000 as more reasonable...

Bunch of cheapskates! What a joke! Maybe as loss of income for 1 week... not for 1+ year(s)!!

In plain and simple English, the US has been caught with its pants down. Time to live up to your obligations, Bushie boy!

 

[jetset]

Compensation decision delayed by US

WTO COMPENSATION DECISION FURTHER DELAYED

December 14 is new deadline

The United States has secured a further delay in making decisions regarding compensation to fellow World Trade Organisation members impacted by its unilateral withdrawal of treaty obligations concerning gambling.

Representatives of Antigua, the European Union and five other nations expected negotiations to wrap up this week, but the Reuters news agency quotes US Trade Representative spokesperson Gretchen Hamel as saying: In order to provide all parties with sufficient time to reach a successful resolution, the United States and the claimants have jointly agreed that these negotiations should be extended until December 14.

Hamel revealed that each negotiation is proceeding at its own pace, and some are quite advanced. "However, we have agreed to extend the negotiation period for all claimants," she said.

Although full details are not yet known on the amount of compensation claimed, there has been media speculation that EU claims could run into billions of dollars following the commercial damage caused to European companies which were obliged to leave the US market in the wake of the Unlawful Internet Gambling Enforcement Act.

Antigua has publicised its demand that the US pay up $3.4 billion in the form of suspended copyright laws, a proposal on which the US has sugggested that around $500 000 would be more appropriate, which the islanders have rejected.

Reuters notes that Hamel suggested that Antigua seems to be the only country that is vigorously pursuing its claim, implying that EU representatives are not as committed. Should agreement on compensation not be achieved, the issue will fall before WTO arbitration. Hamel suggested that there was a strong possibility that the other six nations with claims, including the EU, will settle upon what she termed "a reasonable solution."

 

[Rollo]

Actually, it's going to be bad news if they settle. Once done, the U.S. is going to have still less incentive to change the law in the future. On the other hand, one could also look at it as paving the way for online gaming protectionism of U.S. gaming sites if the U.S. ever develops an online gaming industry down the road... but I think for the moment though it's bad news.

I'm sad to see the U.S. working this out so easily (it seems) with other countries, but one thing I do agree about is I do think Antigua's claim is a bit high. Their figure is 3 or 4 times their entire annual GDP.

Anyway... good luck to Antigua.

 

[silcnlayc]

More Time for US in WTO Online Gambling Compensation Negotiations

More Time for US in WTO Online Gambling Compensation Negotiations

October 25, 2007
Amy Calistri
World Trade Organization trading partners have agreed to give the US until December 14, 2007 to negotiate compensation settlement agreements with countries that have filed damage claims against the US. The claims stem from the US's withdrawal of access to its online gambling market, a retaliatory move it made following Antigua's successful WTO challenge of US online gambling restrictions earlier this year.

The countries that have filed for damages include the European Union, India, Antigua and Barbuda, Japan, Costa Rica, Macao, Canada and Australia. Within the WTO, when a country rescinds a previously ratified trade agreement, countries are allowed to file damages equal to their share of the lost market. The US online gambling market is estimated by some to value $100 billion.

The US had failed to reach settlements with any of the filing countries by the October 22nd deadline. Last month, negotiations with the European Union appeared to have stalled. Antigua is reported to be shunning negotiations, preferring instead to litigate for its $3.4 billion claim. Gretchen Hamel, spokesperson for the US Trade Representative's Office said "Each negotiation is proceeding at its own pace, and some are quite advanced. However, we have agreed to extend the negotiation period for all claimants."

The deadline extension would also allow additional time for the Internet Gambling Regulation and Enforcement Act, introduced by U.S. Representative Barney Frank (D-MA), to gain support in the US Congress.

If passed, the IGREA would effectively create a regulatory framework for internet gambling companies to operate within the US and eliminate the need for WTO trade compensation.

"Additional support for the Frank bill provides encouragement that the U.S. can avoid a major trade clash and paying billions in trade compensation and penalties," said Jeffrey Sandman, spokesperson for the Safe and Secure Internet Gambling Initiative.

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[jetset]

Update

EU COMPANIES WANT MORE U.S. COMPENSATORY ACTION

WTO negotiations may not be going as well as the USTR believes

The World Trade Organisation compensation row between the United States and several nations, notably the European Union, looks set to widen following reports from Reuters news agency this week that EU companies may be impatient with delays in reaching a fair compensation package.

Reports earlier this week that the October 22 deadline for a resolution has been extended to December 14 will have done little to cool things down.

Reuters reports that EU companies, many of them world leaders like PartyGaming, Bwin, Sportingbet and 888.com, saw their stock market value plunge billions in 2006 after the United States passed legislation aimed at shutting down financial transactions with online gambling companies.

In May this year, after being defeated at the World Trade Organisation in a tussle with Antigua, Washington took the rare step of withdrawing its WTO commitment to allow foreign firms into its gambling market, opening itself up to compensation claims from other WTO member nations.

Since then the EU and up to six other countries have been haggling with the U.S. Administration over compensation in the form of concessions in other areas of trade.

Comments by the US trade Representative, Gretchen Hamel recently (see InfoPowa report) suggested that negotiations were progressing, although she brushed aside suggestions that as much as $100 billion might be involved in EU claims.

However, an indication of growing impatience are reports that online gambling firms want European Union trade chief Peter Mandelson to change tack and approach the US Congress on the issue when he visits Washington early next (November) month.

Naotaka Matuskata, senior policy advisor with U.S. law firm Alston & Bird, said Washington was not making meaningful compensation offers and it was time for the EU to turn to the U.S. Congress in an attempt to reverse the online gaming ban.

Matsukata's firm represents UC Group, a British company which processes online payments including for the gaming sector.

"The EU should explore the legislative options available at this moment, largely because the USTR (United States Trade Representative's) office is so dug in," Matsukata, a former USTR official, told Reuters during a visit to Brussels.

Mandelson is due to visit Washington between Nov. 7 and 9. A spokesman said he planned to speak, either by phone or in person, to Barney Frank, chair of the House of Representatives Financial Services Committee. Frank has put forward legislation to roll back the U.S. online gambling financial transactions ban although he has struggled to find substantial support.

"The European Commission continues to strive for the best possible compensation deal for European service providers," Mandelson's spokesman said, declining to comment further.

Matsukata said Mandelson could focus minds in Congress on the potential pain of compensation demanded by the EU and other countries such as Canada and Japan in other areas of U.S. business if the ban is not reversed.

Reuters reports that EU gambling firms have previously urged Brussels to push for $100 billion in compensation, a figure U.S. officials have dismissed as exaggerated.

In 2000, Mandelson's predecessor Pascal Lamy warned the U.S. Congress of retaliatory measures after failing to make headway with the U.S. administration over export tax subsidies ruled illegal by the WTO. The U.S. Administration eventually scrapped those measures known as the Foreign Sales Corporation programme.

 

[jetset]

Update

R.G.A. URGES E.U. TO PERSEVERE ON U.S. CLAIMS

American withdrawal from WTO commitments could be costly

The chief executive of the UK-based Remote Gaming Association, Clive Hawkswood has come out with a strong recommendation to European Union trade commissioner Peter Mandelson to push hard for solid compensation from the United States following its withdrawal of its World Trade Organisation treaty obligations concerning gambling.

The RGA counts most of Britain's major online gambling groups among its members, and it is understood that the EU is negotiating with the US Trade Representative on an EU claim for compensation worth up to $100 billion, along with claims from six other nations. The negotiations have been prolonged until December 14 to give the United States time to consider the claims and make counter offers, or seek final arbitration via the WTO.

Addressing a press conference, Hawkswood said: The EU clearly hasnt accepted the first offer. But it needs to do more. The UK is clearly a big player. We want the UK government to press the EU to hold a strong line.

Hawkswood had earlier led a high level delegation from gaming companies in a discussion on the issue with Mandelson in Brussels to underline the importance of securing a fair deal from the Americans.

 

[jetset]

Update

WTO COMPENSATION CASE LANGUISHING, SAYS ANTIGUA LAWYER (Update)

"I think they are having a difficult time not only with us but with the EC."

Referring to the December 14 delay in making decisions on its World Trade Organisation claim for compensation against the United States (see previous InfoPowa reports) Antigua's lawyer Mark Mendel surmises that this may be caused by difficulties in negotiating a European Union deal.

Speaking to the Antigua Sun on the issue this week, Mendel said compensation negotiations were originally to be completed in September, but were first extended to October, then November 30 and currently into December.

Mendel said the issue was languishing - possibly because the Americans were having difficulties in reaching a deal with the 27 nation European Union which reportedly has demanded compensation worth billions of dollars. "I think its presenting them with more problems than they expected, although why they didnt expect more problems I dont understand, he said.

The European Union, Australia, Canada, Costa Rica, India, Macao and Japan have joined Antigua and Barbuda in filing claims. Mendel said that the process is not an easy one for the US. Thus far, he said, the Americans have been able to conclude a deal with Australia and may have reached an agreement with Japan. The other negotiations remain outstanding.

Really, I think everything is stalled and Im not precisely sure where its going to go, Mendel said. The arbitration ruling on a separate claim by Antigua and Barbuda for US$3.4 billion in compensation for the non-compliance by the US with an earlier WTO ruling is scheduled to be released at the end of this month. Mendel expressed the opinion that that ruling is likely to have a major impact on the negotiations with other nations.

If we get a pretty sizable figure, I think the European Community will be encouraged to take an even stronger line, he said.

Meanwhile in Geneva, the Antiguan Finance Minister Dr. Errol Court kept the pressure on at a WTO trade policy review for the members of the Organisation of Eastern Caribbean States (OECS).

Minister Court told the review meeting that recent actions by the United States undermine the credibility of the body.

During his presentation, Dr. Cort stressed that the United States failure to comply with the WTO rulings and its announcement that it intends to withdraw its commitments in Internet gaming undermines the credibility of the WTO system and may prove what some developing countries have feared; that the system only works to the benefit of the countries that are rich, large or powerful.

He noted that the countrys diversification policy has not been without challenges, since service providers face substantial barriers to trade. As an example of this, he addressed the issue of Internet gaming and the impact the United States restrictions on the cross-border provision of these services has had on the sector.

Antigua and Barbuda has pledged continued commitment to the WTOs multilateral process, despite what Dr. Cort described as the countrys limited financial, human, technical and other resources, all of which exacerbate the challenge of implementing WTO agreements.

Dr. Cort indicated that, notwithstanding the challenges, Antigua and Barbuda believes that trade should be a tool for sustainable growth, development and poverty reduction.

 

[jetset]

Update

EU COMMISSIONER STANDS UP FOR ONLINE GAMBLING

"It's not in the interest of American consumers to have good responsible competitors in this market excluded by regulatory mechanisms..."

The European Union's compensation claim against the United States for its withdrawal of World Trade Organisation obligations on online gambling (see previous InfoPowa reports) took another step forward this week when EU Trade Commissioner Peter Mandelson arrived in Washington to pursue the matter with US leaders.

Mandelson is in Washington as part of an effort to persuade Congress to repeal a ban on Internet gambling signed into law last year, reports Reuters. Comm. Mandelson argued that the ban was unfair to Europe, where much of the world's online gambling operations are centred.

The United States must change an Internet gambling law that discriminates against European companies by preventing them from offering services in the U.S. market, the European Union's top trade official said.

"What we need to see is a change in U.S. legislation that removes that discrimination against EU operators," Mandelson told reporters before heading to Capitol Hill to discuss the issue with U.S. lawmakers, the Reuters news agency reported.

"It's not in the interest of American [online gambling] consumers to have good responsible competitors in this market excluded by regulatory mechanisms," Reuters quotes Mandelson.

In October 2006, in one of his final acts as Senate Majority Leader before his retirement, Bill Frist engineered a set of rules that managed to tack a previously rejected separate bill banning monetary transactions with online gambling operations in the US, onto a sea ports regulation bill containing anti-terrorism measures that the Senate was certain to pass, and President Bush sure to sign.

The SAFE Ports Act doesn't ban the act of gambling online, but prohibits financial transactions with online gambling companies. The ban on those transactions adversely impacted the online gambling industry and caused extensive corporate damage to companies that exited the US market in its wake. Within weeks of the UIGEA being signed into law, trading in stocks of online gambling firms in Europe plunged sharply.

European gambling firms recently asked the EU to pursue claims of up to a reported $100 billion in compensatory sanctions, and Comm. Mandelson indicated he supported their claims, raising them to the level of a trade deficit line-item.

"When a member of the WTO defaults on its commitments, compensation is due," Mandelson remarked. "That's the case of online gambling."

In a speech before the Carnegie Endowment later, Mandelson presented a broader view of EU/US trade relations:

"Close ties between Europe and the United States are still the main foundation of world politics and the global economy," he said. "We have a deep store of shared values, experiences, and interests.

"The EU is beginning to transform itself from an internal market into an outward looking political actor - as [French] President Sarkozy reflected in his speech to Congress this week. The EU and the US cannot dictate every contour of the global age, but that does not mean we will be dictated to either."

 

[jetset]

Update

EU COMMISSIONER CALLS ON BARNEY FRANK

"I think (Frank) takes a fair-minded, common sense approach to this," says Mandelson

The headline-grabbing visit to Washington by European Union Trade Commissioner Peter Mandelson continued keep the online gambling industry in the spotlight this week as the EU emissary visited US legislators and trade representatives and spoke at meetings on "Transatlantic Economic Cooperation."

Mandelson's principal mission is to negotiate fair and adequate compensation for the 27 nation EU following the unilateral withdrawal of WTO trade obligations by the United States (see previous InfoPowa reports) However, he has also taken the opportunity to call for an end to American laws which discriminate against foreign online gambling companies.

Whilst he has hinted that the $100 billion compensation claim called for by EU commercial organisations may be a little ambitious, Mandelson has stressed that he is pressing for substantial redress .

"When a member of the W.T.O. defaults on its commitments, compensation is due," he said in an interview with Reuters. "That's the case of online gambling."

With at least seven other countries seeking compensation, the European Union is probably the largest claimant in the issue and negotiations have twice been extended as efforts to achieve an acceptable settlement continue. If the parties cannot settle the matter between themselves, the E.U. could demand a binding arbitration before a W.T.O. panel.

Mandelson met with Congressman Barney Frank during his visit, discussing the legislator's proposed "Internet Gambling Regulation and Enforcement Act", which seeks to regulate Internet gambling and possibly bring the U.S. into compliance with World Trade Organisation rules by creating a level playing field among domestic and international operators.

"I think [Frank] takes a fair-minded, common sense approach to this and we look forward to that being effective legislation," said Mandelson.

The U.S. Trade Representative Susan Schwab was also on Mandelson's itinerary on the compensation issue.

Trade experts applauded Mandelson's comments during his stay in Washington.

Nao Matsukata, formerly Director of Policy Planning for the US Trade Representative and now a Senior Advisor for Alston and Bird LLP said that the EU initiative signals a new chapter in the resolution of the WTO case.

"His willingness to meet with Chairman Frank suggests that Mandelson is open to finding a legislative solution to the problem," said Matsukata. "The meeting today initiated a mutually supportive effort to resolve the unfortunate decisions of the United States to withdraw from its GATS commitments, and should help create positive momentum for the Frank legislation on Capitol Hill. Next steps should include closer consultations between congressional staff and Mandelson and his staff."

Lode Van Den Hende, a trade expert in Brussels commented on the Frank bill: "The U.S. Congress is seeking to regulate online gambling in a competitive and fairly taxed environment that encourages the participation of responsible companies. It is possible for U.S. legislation to create strong consumer protections, facilitate consumer choice, and provide durable tax revenues for the future.
"Since the U.S. Trade Representative's sole interest seems to be to continue to violate U.S. treaty obligations under the WTO, it is incumbent upon the E.U. to work directly with the U.S. Congress to develop a responsible solution."

 

[jetset]

Update

A NEW PERSPECTIVE ON INTERNET GAMBLING

US politicians have hopefully taken onboard a better view of a popular pastime

Good to their word (see previous InfoPowa reports) Antiguan politicians used a Caribbean business conference this week to provide their US colleagues with a more positive perspective on Internet gambling and the hypocrisy of American laws seeking to disrupt the popular pastime.

Weekend meetings were organised between a team led by the Antigua prime minister Baldwin Spencer and members of the U.S. Congress in the hope that it would help resolve the ongoing World Trade Organisation trade battle between the two nations.

Spencer discussed the dispute with New York Democrat Rep. Charles Rangel, chairman of the House Ways and Means Committee, and three other members of the Congressional Black Caucus on the sidelines of the regional business conference.

Antigua accuses the U.S. of crippling its gaming industry through hypocritical laws such as UIGEA which allow US horseracing, lottery and fantasy sport betting via the Internet, but prohibit financial transactions with online gambling companies.

"We're hoping that coming out of this dialogue here, Charlie Rangel would have a better and greater appreciation of Antigua and Barbuda's position," Spencer said.

The Antiguan government had also planned to invite the US lawmakers on a tour of the Caribbean nation's Financial Services Regulatory Commission and some Internet gaming companies, but it is not known if this took place. Finance Minister Dr. Errol Cort had hoped to demonstrate to the American visitors that Antigua has the will and the capacity to adequately regulate online gaming operations.

Congressman Rangel, who oversees tax legislation as chairman of the Ways and Means Committee, said he worries Washington may have overstepped its authority in the long-running dispute.

"I think my country is wrong in trying to change the rules of the WTO," Rangel told local Caribbean reporters. "Your great nation and ours will have to negotiate those differences in terms of equity and fairness."

 

[jetset]

ONLINE GAMBLING INDUSTRY APPLAUSE FOR EU TRADE COMMISSIONER (Update)

U.S. visit to put the industry's case achieved wide coverage.

European Union Trade Commissioner Peter Mandelson's frank exchanges whilst on a visit to Washington recently on the U.S. and World Trade Organisation dispute over online gambling inequities has been applauded by industry representatives.

During his visit (see previous InfoPowa reports) Mandelson called on the US government to give European operators fair and non-discriminatory access to its multi-billion dollar online gambling market. The issue is still under negotiation with claims worth billions of dollars on the table from several nations, and a deadline for WTO arbitration of December 14.

During his visit Mandelson met with Congressman Barney Frank to discuss the US politician's proposed legislation seeking to regulate and license online gambling in the United States, hopefully opening up the market to reputable companies.

During his visit, Mandelson said: The US has so far opted for compensation to make right what is wrong. I dont think compensation does that job. What we really need is for legislation to be put right and for foreign operators not to be discriminated against in the way that the present legislation does. I will continue to make these arguments on behalf of European industry.

Clive Hawkswood, chief executive of the Remote Gaming Association, a trade association that represents leading and mostly listed British public companies, said: We were very pleased to hear Commissioner Mandelsons public support for non-discriminatory legislation to regulate gambling in the US. It is in the consumer's interest to have a legitimate, well regulated market. We urge the Commission to ensure that adequate legislation is in place before concluding the current compensation negotiations.

Earlier this month, Hawkswood accused the US government of "....blatantly protectionist behavior. U.S. companies are entitled to operate in European markets, while we've been forced out of the United States. Commissioner Mandelson's visit is a good opportunity to address discrimination against responsible European companies. The USTR should be put on notice that the E.U. will not allow the wholesale denial of trade rights protected by the World Trade Organisation."

 

[jetset]

Horse racing - and why American law is a farce

ONLINE U.S. HORSE RACE BETTING SITES CONSOLIDATE

$80 million deal comes to fruition through mobile and Internet access

The horse racing industry continues to bet bigtime on the expanded opportunities offered by the Internet and facilitated by industry carve-outs in American anti-online gambling legislation.

This week, Kentucky's Churchill Downs Inc. group moved to consolidate three online advance-deposit wagering sites that it bought earlier this year into its own service, TwinSpires.com.

The sites - BrisBet.com, TsnBet.com and WinTicket.com - were purchased as part of a $80 million deal in June.

Churchill Downs ADW account holders who previously wagered through the account-wagering sites the company acquired in June 2007 will continue to enjoy many of the same features those sites offered, as well as the AmericaTAB wagering interface that powered BrisBET.com TsnBET.com and Winticket.com. That wagering interface has been updated with a fresh look and feel and the TwinSpires.com brand.

Churchill Downs ADW account holders who wagered through TwinSpires.com prior to the consolidation will now experience a faster and more feature-rich wagering interface, said a company spokesperson. In addition, they now have access to free handicapping information provided by Brisnet and have the option of placing wagers by mobile device.

All BrisBET.com, TsnBET.com and Winticket.com customers can access their wagering account information, including account balances, through TwinSpires.com and will be able to log in to the new TwinSpires.com with their existing account number and personal identification number. Players who already had TwinSpires.com accounts will continue to log in with their existing username and password.

Since acquiring the AmericaTAB and Bloodstock Research Information Services (BRIS) ADW platforms in June, our Kentucky and California teams have been working hard to combine the best features of all of our services into a single, improved home for account wagering, said Vernon Niven, the companys executive vice president of technology initiatives and president of TwinSpires.com.

The new TwinSpires.com integrates the ease of use, familiarity and exceptional customer service that BrisBET.com, TsnBET.com and Winticket.com customers have come to appreciate with updated navigation, rich handicapping information and a modern appearance. By consolidating our ADW sites under the TwinSpires brand, we can now focus our resources more efficiently in product development, marketing and customer service.

TwinSpires.com charges no fees for wagering services and offers free Brisnet past performances as well as Twin Spires Club player rewards. TwinSpires.com customers also enjoy live video streaming and race replays.

TwinSpires.com is the official advance deposit wagering service for Churchill Downs Incorporated and its family of racetracks, as well as for the Kentucky Derby and Kentucky Oaks. TwinSpires is a wholly owned subsidiary of Churchill Downs Incorporated and offers wagering on races from Churchill Downs, Santa Anita, Gulfstream Park, Fair Grounds Race Course, Pimlico Race Course, Lone Star Park, Golden Gate Fields, Laurel Park and other popular racing venues.

 

[sdaddy]

The horse racing industry continues to bet bigtime on the expanded opportunities offered by the Internet and facilitated by industry carve-outs in American anti-online gambling legislation.

They may be taking advantage of these carve-outs now, but I'm waiting for the time when the US is finally forced to pay huge compensation to other countries because of the resulting withdrawal of WTO commitments. Then, when the US public wakes up to this, there could be a big backlash against the domestic horse racing industry for this mess.

 

[jetset]

40 000 reasons to oppose online gambling?

40 000 REASONS TO OPPOSE ONLINE GAMBLING?

Racing industry generous to anti-online gambling politician

One of online gambling's most passionate detractors apparently enjoys almost $40 000 in encouragement and support from an industry that benefits increasingly from his attacks on Internet gambling.

According to an article on Gambling Web this week, quoting from the Internet webcast "Perspectives," the wannabe nemesis of online gambling, Congressman Bob Goodlatte of Virginia, has accepted almost $40 000 in campaign funds from the horse racing industry.

Goodlatte has consistently been an ardent supporter of anti-online gambling legislation that gives inequitable carve-outs for Internet betting through state lotteries, fantasy sports and, yes - horse racing in the United States. And the latter has in particular embraced the opportunity with expanded online betting activities (see recent InfoPowa reports)

Goodlatte has been frequently quoted as supporting the view that online gambling is immoral, somewhat out of balance with his support for the carve outs, which have contributed to the invidious (and potentially expensive) situation that the United Stated currently finds itself in vis-a-vis the World Trade Organisation; facing billions in claims from other nations..

Goodlatte has been vociferous in his efforts to get online gambling banned or hamstrung. Last month, he appeared before the House Judiciary Committee hearing on online gambling assembled by Congressman John Conyers, where he again insisted that the Unlawful Internet Gambling Enforcement Act - which seeks to prohibit financial transactions with online gambling companies - be enforced with criminal prosecutions.

 

[Mousey]

40 000 REASONS TO OPPOSE ONLINE GAMBLING?



According to an article on Gambling Web this week, quoting from the Internet webcast "Perspectives," the wannabe nemesis of online gambling, Congressman Bob Goodlatte of Virginia, has accepted almost $40 000 in campaign funds from the horse racing industry.
...
Goodlatte has been vociferous in his efforts to get online gambling banned or hamstrung. Last month, he appeared before the House Judiciary Committee hearing on online gambling assembled by Congressman John Conyers, where he again insisted that the Unlawful Internet Gambling Enforcement Act - which seeks to prohibit financial transactions with online gambling companies - be enforced with criminal prosecutions.

Just a good ol' boy, looking out for horse racing. Pardon me while I

 

[jetset]

CRUNCH WEEK FOR WTO DISPUTE

Friday deadline for US compensation response

After years of litigation, political manouevring and agreed postponements of previous deadlines, it looks as if Friday this week may see some firm developments in the United States response to its World Trade Organisation dilemma.

Mark Mendel, a private attorney representing Antigua, told Reuters ahead of an expected ruling by the WTO arbitration panel on Friday that he expects to succeed with a claim for compensation that could be worth up to $3.44 billion a year in "cross retaliation" moves as a response to US actions against the Antiguans over online gambling.

In an April 2005 ruling, the WTO found a U.S. law allowing only domestic companies to provide online horse-race gambling services discriminated against foreign companies, reports The Guardian newspaper. The United States has argued Antigua is entitled to only $500 000 in compensation because of that ban.

But Antigua - which built an online gambling industry to replace declining tourist revenues - claims the damage to its economy by protectionist and discriminatory online gambling bans demands significant compensation.

The Caribbean islanders specifically want WTO permission to suspend copyright protections on American movies, music and software so its domestic manufacturers can export those products to the United States and potentially other markets, Mendel said.

"I think we provided plenty of proof to justify our figure ... We feel pretty confident it should be a high number," Mendel said. "I think there's no doubt that we're going to get the ability to cross-retaliate."

Last year, the U.S. Congress tightened restrictions on Internet gambling by making it illegal for banks and credit card companies to make payments to online gambling sites. In addition, the Bush administration announced in May it was retroactively excluding gambling services from market-opening commitments it made as part of the 1994 world trade agreement.

That opened the door for the European Union, Japan, India and other trading partners to seek "compensation" from the United States in the form of increased access to another U.S. service market, such as insurance or air travel.

European Union online gambling companies, angry about being shut out of the lucrative U.S. online gambling market, have urged the EU to seek as much as $100 billion in compensation. Although EU Trade Commissioner Peter Mandelson has played down that suggestion, he has said the United States would have to provide "substantial" compensation to satisfy the EU.

The latest deadline for finishing those talks is Friday - the same day the WTO will rule on Antigua's damages request.

Nao Matsukata, senior policy adviser with U.S. law firm Alston & Bird, said he expected the U.S.-EU compensation talks would drag on past Friday and be influenced by the arbitrator's report.

"The Antigua report could clearly advantage one side or another depending on how it comes out," said Matsukata, whose firm represents UC Group, a British company which process online payments including the gaming sector.

 

[lots0]

As noted in another thread

The WTO decision has been delayed.

The word is the WTO will let everyone know this coming Monday when the decision will be made public.

 

[jetset]

DISAPPOINTING W.T.O. NEWS

Yet another delay in decision on trade dispute

The industry's hopes for positive news from the World Trade Organisation were dashed Friday when Reuters news service reported yet another delay on the trade body's long-awaited decision regarding the amount of retaliation that Antigua and Barbuda can impose on the United States in their Internet gambling trade dispute.

"We understand the report has been delayed," said Gretchen Hamel, a spokeswoman for the U.S. Trade Representative's office, without giving further details.

The delay may have also impacted the claims of other countries, including the EU, for which there was a similar deadline of December 14. In a parallel issue, the negotiations with the United States to come to a compensation agreement also seemed to be in limbo. If those talks don't lead to a consensus, the European Union could, like Antigua, also request that a WTO arbitration panel decide the matter.

Antigua has been in a long-running fight to offer its Internet gambling services in the United States. The case is being closely watched by European online gambling companies, which were pushed out of the U.S. market by new US legislation last year, suffering extensive commercial damage.

In an April 2005 victory for Antigua, the WTO rules that a U.S. law allowing only domestic companies to provide online horse-race gambling, fantasy sports and state lottery services discriminated against foreign firms. The US horse-racing industry, in particular, has taken extensive advantage of its legislative carve-out, introducing Internet betting on the pastime in a big way.

Antigua, which built an online gambling industry to replace declining tourism revenues, has asked permission to impose $3.44 billion a year worth of "cross-retaliation" on the United States. It wants the WTO's authorisation to suspend copyright protections on American movies, music and software so its domestic manufacturers can export those products to the United States and potentially other markets.

The United States representative has countered with the observation that Antigua is entitled to no more than $500 000 in damages in the dispute, something which Antigua's finance minister, Dr. Errol Cort hotly contests, claiming full justification has been provided.

The WTO ruling may not necessarily be too long delayed - Mark Mendel, a private attorney representing Antigua, said Friday he was told the WTO was putting the final touches to the report, which also needs to be translated.

"They'll let us know on Monday precisely what day to expect it," Mendel said on his way to a meeting with House of Representatives Ways and Means Committee Chairman Charles Rangel, a New York Democrat, and other lawmakers to discuss the case.

Last year the US Congress tightened restrictions on Internet gambling by making it illegal for banks and credit card companies to make payments to online gambling sites. In addition, the Bush administration announced in May it was retroactively excluding gambling services from market-opening commitments it made as part of the 1994 world trade agreement.

That opened the door for the European Union, Japan, India and several other other trading partners to seek "compensation" from the United States in the form of increased access to another U.S. service market, such as insurance or air travel.

The deadline for finishing those WTO talks also was on Friday, but it appeared that would be extended as well.

 

[jetset]

This is a very disappointing result for EU gambling companies

US, EU Agree on Compensation Over Online Gambling Ban


GENEVA (AP) - The United States will provide the European Union with new trade concessions in mail services and warehousing as part of a compensation deal over Washington's refusal to lift restrictions on Internet gambling, the European Union said Monday.

The agreement also includes new U.S. market opportunities for European companies offering testing and analysis services, as well as in research and development, Brussels said in a statement.

The postal and courier concessions will affect how Germany's DHL, the express and logistics division of Deutsche Post World Net AG, competes with U.S.-based companies FedEx Corp. and United Parcel Service Inc., EU officials said.

The overall trade valuation of the package is believed to fall far short of the $100 billion European online gambling sites had claimed the United States owed. EU officials could not immediately say how much the deal was worth.

"This compensation cannot be quantified up to the euro," the EU mission to the WTO said in an e-mailed statement. "Nonetheless, it is clear that new trade opportunities are created for EU service suppliers in important sectors in the U.S."

The office of the U.S. Trade Representative in Washington declined immediate comment.

Washington stopped U.S. banks and credit card companies last year from processing payments to online gambling businesses outside the country. The decision closed off the most lucrative region in a growing market currently worth about $15.5 billion. About half of the world's online gamblers are based in the U.S.

In March, the World Trade Organization delivered a final ruling that the U.S. ban was illegal.

The commerce body found that the U.S. had the right to prevent offshore betting as a means of protecting public order and public morals. But it said the U.S. was breaking trade law by targeting online gambling without equal application of the rules to American operators offering remote betting on horse and dog racing.

"While the U.S. is free to decide how to best respond to legitimate public policy concerns relating to Internet gambling, discrimination against EU or other foreign companies should be avoided," said Peter Power, spokesman for EU Trade Commissioner Peter Mandelson.

The WTO is expected to rule in the coming weeks on a request by Antigua and Barbuda to impose $3.4 billion in commercial sanctions against the U.S. for its failure to comply with the ruling. The tiny Caribbean nation, the smallest ever to win a WTO dispute, has threatened to target U.S. patents and trademarks.

After losing the case, Washington sought to fix the problem by rewriting its obligations under the WTO's treaty on trade in services. That allowed Canada, Costa Rica, India, Macau, Japan and the EU to file compensation claims.

EU officials said their deal creates new U.S. market opportunities for European companies seeking to expand investment and trade in the international mail business.

Washington also agreed to ease access to European providers of research and development in the natural sciences, social sciences and humanities, and companies offering technical testing and analysis services. The commitments do not cover programs funded by the U.S. government, according to the EU's Geneva mission.

The U.S. and Canada are also believed to be close to a deal.

 

[Simmo!]

Er Or put another way, the EU has sacrificed the online gambling industry to appease other larger more influential companies in unrelated sectors. Correct? I still don't understand why politics has got itself such a bad name Granted, I'm sure those other markets are deemed of more benefit to more people, but that's more than a tad underhanded IMO. So it looks like the US still wields the power over the EU.

Still, on a positive note, at least it's clear now that they don't give a sh*t about the industry and it will save some people a lot of wasted time I guess. And I'm sure Antigua are well chuffed to know for sure they can't expect any support from the EU.

 

[Casinomeister]

Er Or put another way, the EU has sacrificed the online gambling industry to appease other larger more influential companies in unrelated sectors. Correct? I still don't understand why politics has got itself such a bad name

Think you hit the nail on the head.

 

[jetset]

That's pretty much what it amounts to - early reports are indicating that the EU officials are unable to put a price on the concessions they have accepted...and they have made some namby pamby statements about the EU continuing to persuade the Americans to liberalise their online gambling.

On the face of it, this stinks and the market is reacting in that light.

I wonder whether the Antiguans will show a little more determination in what they accept - that still seems to be on the table.

 

[jetset]

ONLINE GAMBLING FIRMS DISAPPOINTED IN EU - US DEAL

Concessions accepted in return for the US changing its trade obligations are unlikely to assist online gambling firms

European Union negotiators, probably in one of the strongest positions yet in the World Trade Organisation conflict with the United States, have accepted a disappointingly milk-and-water package that does little to compensate online gambling companies for the damage done by unilateral American trade decisions.

In early reaction to news of the deal, signed in Geneva, The Guardian newspaper described it as "....a savage blow to the EU online gambling industry."

Shares in companies such as Party Gaming and Bwin fell sharply after it emerged that they and their peers had failed to persuade the EU to challenge the US despite an intense lobbying campaign highlighting the contradictions in the American position.

EU spokesmen released a statement which said: "A bilateral agreement was signed in Geneva, which provides EU service suppliers with new trade opportunities in the US postal and courier, research and development, storage and warehouse sectors. The US also made concessions in the testing and analysis services sector."

The Commission said it would still press the United States for "a non-discriminatory policy towards Internet gambling".

The Reuters news agency reports that the case dates to April 2005 when the World Trade Organisation ruled that a US law allowing only domestic companies to provide online horse-race, state lottery and fantasy sports gambling services discriminated against foreign companies.

Last year, the US Congress tightened restrictions on Internet gambling by making it illegal for banks and credit card companies to make payments to online gambling sites.

And in May, Washington announced it was retroactively excluding gambling services from market-opening commitments it made as part of a 1994 world trade deal, kicking off compensation talks with the EU and other countries including Japan and India.

A spokesman for Austrias Bwin online gambling group said the company had not expected the EU-US talks to yield more at this point but was confident the EU Commission would continue to push for a regulated opening of the US Internet gambling market.

"We continue to believe that it is better to regulate than to prohibit, because the reality shows that the prohibition only drives out the transparent, listed operators," he said. "We trust the Commission will continue to push further for this. It certainly is going to be a long way still," he added.

Bwin shut down its US poker site and wrote off 500 million euros ($717 million) of investments last year after the United States effectively outlawed Internet gambling. Other major European gambling companies suffered similarly extensive damage.

Associated Press reported that the postal and courier concessions will affect how Germany's DHL, the express and logistics division of Deutsche Post World Net AG, competes with U.S.-based companies FedEx Corp. and United Parcel Service Inc., EU officials said.

The overall trade valuation of the package is believed to fall far short of the $100 billion European online gambling sites had claimed the United States owed. EU officials could not immediately say how much the deal was worth.

"This compensation cannot be quantified up to the euro," the EU mission to the WTO said in an e-mailed statement. "Nonetheless, it is clear that new trade opportunities are created for EU service suppliers in important sectors in the U.S."

The office of the U.S. Trade Representative in Washington declined immediate comment.

"While the U.S. is free to decide how to best respond to legitimate public policy concerns relating to Internet gambling, discrimination against EU or other foreign companies should be avoided," said Peter Power, spokesman for EU Trade Commissioner Peter Mandelson.

The WTO is expected to rule in the coming weeks on a request by Antigua and Barbuda to impose $3.4 billion in commercial sanctions against the U.S. for its failure to comply with the ruling. The tiny Caribbean nation, the smallest ever to win a WTO dispute, has threatened to target U.S. patents and trademarks.

After losing the case, Washington sought to fix the problem by rewriting its obligations under the WTO's treaty on trade in services. That allowed Canada, Costa Rica, India, Macau, Japan and the EU to file compensation claims.

EU officials said their deal creates new U.S. market opportunities for European companies seeking to expand investment and trade in the international mail business.

The U.S. and Canada are also believed to be close to a deal.

The head of the Remote Gaming Association, which counts many of Europe's major online gambling firms among its membership, said he was disappointed with the deal the EU had accepted.

CEO Clive Hawkswood said his organisation will continue lobbying for a regulated system in the US. He added that though the news was not unexpected he had hoped the negotiations would go on for a while to put some pressure on the US.

Hawkswood hailed the efforts made by EU trade commissioner Peter Mandelson in taking the case to the US. He has done a lot for us, he said. When was the last time we had a senior politician go to the US to press the case for the gambling industry?

Hawkswood said the agreement between the EU and the US was likely to be a factor in the ongoing negotiations between the US and China, India, Canada and other countries over the WTO issue. This includes the dispute with Antigua which started the process where a decision regarding the level of compensation due to the tiny Caribbean island has been delayed.

 

[lots0]

I wondered why the US backed down on the Global warming thing. The Bush boy is not known for backing down (stupid as a rock he is).

I got a feeling it was all part of a big deal.

This really sucks for Americans... And for those gaming companies that lost money in the UK.

Looks like we all got sold down the river by the EU.