Online Gambling in the Caribbean

The below note was recently posted on Jackpot.co.uk on the continued issue of online gambling in Antigua and Barbuda.

"Antigua and Barbuda welcomed Deputy United States Trade Representative (USTR) Ambassador John Veroneau yesterday, whose visit will focus on talks with the Caribbean nation’s Minister of Finance and the Economy, Dr Errol Cort, regarding the ongoing conflict over internet gambling between the two countries.

The dispute began in March 2003, when Antigua and Barbuda first expressed concern to the World Trade Organization (WTO) that the US government was taking actions to stifle their online gambling industry. The Caribbean nation won the preliminary ruling, but a number of appeals by the US has kept the issue in limbo ever since, despite rulings stating that certain aspects of their online laws are illegal and discriminatory. More recently, Antigua has retaliated by seeking authorization to ignore US patent and copyright laws, which would allow them to make internet piracy of US media legal. It has also been speculated that Dr John Ashe, Antigua and Barbuda’s Ambassador to the WTO, will also take part in the talks.

A deadline had been set for 11th July for the deferral of the case at the WTO, but that date passed with little sign of a resolution. However, hopes are high that this meeting will yield more progress. “I think it is a positive sign that a very high-level US delegation is visiting Antigua and Barbuda to engage in these talks,” commented Dr Cort.

The talks are scheduled to continue into this afternoon."

On a related issue, the EU is also now also investigating the US for its descrimatory practices towards the international online gambling market. "The investigation by the E.U. is the result of a Trade Barrier Regulation complaint filed by the Remote Gambling Association (RGA), which represents the largest remote gambling companies in Europe. The RGA claims the United States is in violation of international trade law by threatening and pursuing criminal prosecutions, forfeitures and other enforcement actions against foreign Internet gambling operators, while allowing domestic U.S. online gambling operators, primarily horse betting, to flourish." It is worth noting that the US laws that have come into question with regards to the online gambling issue are as follows:

The Wire Act (1961) - Prohibits nearly all gambling by telephone and the telegraph, but says nothing about the Internet. Instead of updating this archaic law to include online gambling, the Bush administration passed the Unlawful Internet Gambling Enforcement Act in 2006.

The Unlawful Internet Gambling Enforcement Act (UIGEA) - The UIEGA made it illegal for financial institutions to handle gaming transactions between US residents and online gambling sites. However, the UIGEA exempted certain forms of state-sanctioned online gambling such as horse race betting and state lotteries. Hence, US domestic online gambling institutions are protected, unlike international gambling bodies such as those in Antigua and Barbuda.

Internet Gambling Regulation and Enforcement Act (H.R. 2046) - Introduced by Congressman Barney Frank. This legislation would bring the United States into compliance with World Trade Organization (WTO) requirements by regulating Internet gambling and creating a level playing field among domestic and foreign Internet gambling operators.