Approving the Unlawful Internet Gambling Prohibition Act may have been a smart electioneering move, but it could have adverse consequences when it comes to the World Trade Organization dispute between the USA and Antigua and Barbuda.
The World Trade Organization is due out with its decision in early
December as to whether the US has been in compliance with its ruling
made in favor of the tiny Caribbean island of Antigua, which basically
stipulates the US cannot interfere with internet gambling activities
of other jurisdictions. The WTO is likely to find the US has not been
in compliance.
Of importance here is that the United States has filed a grievance
with the World Trade Organization in regard to China on another issue,
and would most certainly need to abide by any other WTO decisions
if they are to make any sort of headway in this matter.
Antiguan Finance Minister Dr. Errol Cort, Health Minister John Maginley,
and Attorney-General Justin Simon, were all in Washington, D.C., on
official business this week. In speaking about their meetings with
US Government officials, Attorney-General Simon noted that Antigua
and Barbuda remains committed to finding an amicable resolution in
its case against the United States on Internet gaming.
Antiguan officials told the Guardian that the new legislation, due
to be signed into law by President Bush soon, was "...as
contrary to the decision of the WTO in our case as can possibly be
imagined" and "....puts the United States on
a direct collision course with the WTO".
"The new legislation just makes our case before the WTO
that much stronger," said Mark Mendel, a lawyer who represents
Antigua in the WTO.
Complaints to the WTO from European companies are brought by the European
Commission, which said yesterday it had not yet received any approach
from any UK company on the issue. However, several UK companies, including
Sportingbet, have indicated they are actively considering a WTO case
against the US.
Sportingbet chief executive Nigel Payne has been in Antigua since
Tuesday afternoon and is understood to be meeting the Antiguan authorities
to discuss the US legislation. Sportingbet has a licence in Antigua,
which allows it to operate servers on the island.