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18 June 2008

Antigua - U.S. online gambling resolution set for Friday

Ever since the U.S. passed the Unlawful Internet Gambling Enforcement Act (UIGEA) in 2006, the nation of Antigua has been in odds with the U.S. over that same Act. Antigua accuses the United States of crippling its gambling industry by preventing the banks and other financial institutions from processing transactions related to online gambling websites and scored a minor victory last year, when the World Trade Organization (WTO) backed Antigua's request to target US services, copyrights and trademarks in retaliation for a US online gambling ban. Unfortunately for Antigua, the small nation was only allowed to do so in the limits of $21 million annually, compared to the $3.4 billion requested by Antigua.

Sean M. Spicer, a spokesman for the office of the US Trade Representative, has said the US and Antigua were trying in good faith to settle the dispute through a mutual agreement. But the June 6th WTO deadline has long passed without a resolution being reached between the two parties over the online gambling ban. On Monday, Finance Minister Errol Cort said sit-downs with US trade representatives could achieve resolution over the gambling discord by June 20, saying the new settlement deadline would "allow both parties additional time to see whether we're able to meet some amicable resolution," although specific information was not released.

10 March 2008

EU in US online gaming enquiry

The EU launched an enquiry to examine if U.S. policies affecting foreign online gambling firms breach trade rules.

The European Commission is to assess European firms' complaints that they have been discriminated against.

A 2006 ruling effectively banned foreign internet firms from operating in the US.

European firms have complained that the US has targeted foreign gambling firms while allowing US rivals to operate.

'Double whammy'

Industry association the Remote Gambling Association (RGA) lodged a complaint on the topic in December with the European Commission.

It claimed the Department of Justice (DoJ) was trying to prosecute foreign gambling operators while allowing US firms to operate, especially those involved in horse betting.

"As the industry trade association, we cannot simply sit on the sidelines and watch while our members... suffer the double whammy of being prosecuted for activities whilst US industry is not," RGA head Clive Hawkswood said.

The EU said: "Despite statements by the DoJ that internet gambling was not allowed, many local companies were actively supplying this type of service".

"The US has the right to address legitimate public policy concerns relating to internet gambling, but discrimination against EU firms cannot be part of the policy mix," said EU trade commissioner Peter Mandelson.

By stopping US banks and credit card companies from processing payments to online gambling operations outside the country in 2006, the US effectively closed the market for overseas gambling firms.

But in 2007 the WTO ruled that the US was breaking trade laws by targeting online gambling firms, without applying the rule in the same way to US firms offering online betting on horse and dog racing.

The World Trade Organization (WTO) ruled last December that the US ban was illegal in a case taken by Antigua and Barbuda allowing it to impose $21m in annual trade sanctions against the US.

This raised the issue of whether others would also try to challenge the US position.

The EU, which is set to examine the complaints over the next five to eight months, says it is looking forward to debating the issue with the US authorities and reaching a "mutually acceptable solution".

It could trigger the EU to lodge a complaint against the US with the WTO.