Friday, October 6, 2006

ST JOHN'S, Antigua: Officials of Antigua and Barbuda have expressed dismay at the early-morning passage by the United States Congress on 30 September 2006 of legislation titled the "Unlawful Internet Gambling Enforcement Act of 2006."

This new law, rushed through Congress in the waning minutes of the Congressional session, by Senate Majority Leader Bill Frist, was appended to a bill called "The Port Safety Act, 2006." The purpose of the Act is to increase protection of American ports from threats of terrorism.

Although the legislation was presented as a measure to further crack down on gambling on the Internet, the bill actually expands the availability of domestic remote gambling opportunities, while at the same time impeding the ability of these services to be provided from foreign jurisdictions such as Antigua and Barbuda.

In 2005, Antigua and Barbuda won a decision from the World Trade Organization (WTO) in Geneva, declaring that United States efforts to prevent the provision of these services to consumers in America from Antigua and Barbuda were in violation of the United States' obligations under global trade agreements and in addition conflicts with its own domestic laws, particularly the Interstate Horse Racing Act which makes provision to supply remote gaming and betting service to its citizens.

"This baldly protectionist legislation, tacked on to a major security bill at the last possible minute, is as contrary to the decision of the WTO in our case as can possibly be imagined," stated Antigua and Barbuda's legal representative at the WTO, Mr. Mark Mendel. "Expanding domestic remote gambling while at the same time further impeding our operators the right to provide these services -- which the United States committed to do under the WTO agreements -- is almost impossible to comprehend," he further added.

In support of Mendel's claims, the Antigua and Barbuda Ambassador to the WTO, Dr John Ashe, commented, "This puts the United States on a direct collision course with the WTO over free trade in services -- something I am not sure that many in Congress realized when they approved this unfortunate legislation in the early morning hours."

Ironically, the day the bill was approved, a high-level delegation headed by the Minister of Finance & the Economy Dr Errol Cort from Antigua had just concluded a week-long goodwill mission to Washington, D.C., where they met with a number of Congressional leaders and members of federal agencies with a view to working out a mutually satisfactory compromise to the trade dispute between the two countries.

"It is remarkable that on the heels of our visit, during the course of which we highlighted the desire of Antigua to amicably work together with the United States Government in ensuring the safe delivery of these services to consumers in America, the Congress should choose to further protect their remote domestic industry at the cost of countries such as Antigua and Barbuda, where these services are highly regulated," noted Cort.

Antigua only recently requested the formation of a "compliance panel" from the WTO, claiming the United States remained non-compliant with the 2005 WTO rulings in favour of Antigua and Barbuda. The panel, which has already commenced its review, is expected to issue a ruling sometime early in 2007. "While the adoption of this new bill perhaps marks a low point in fair trade for developing countries such as Antigua and Barbuda, it is certainly going to make our case at the WTO even easier than it already was; there is absolutely no way that the United States will be able to justify its opposition to the cross-border provision of these services with this discriminatory legislation in place," said Mendel.

The Government of Antigua and Barbuda says it is very concerned that it is being permeated within the international community that the twin island state is providing illegal gambling and betting services.

Antigua and Barbuda's Solicitor General and Chairman of the Financial Services Regulatory Commission, Lebrecht Hesse, opined, "Internet gaming is not illegal in the jurisdiction of Antigua and Barbuda, the provision of gaming and betting services is permissible under International Business Corporations Act., and the Interactive Gaming and Wagering Regulations."

The Chairman also added, "The passage of this bill ultimately indicates that members of the United States Congress are unaware of the intricacies of our gaming dispute as a trade matter and regrettably passed a bill that had 'moral' overtures."

The Director of Gaming, Kaye McDonald, commented, "It is quite unfortunate the bill was passed as the foundation for consolidated supervision has already been laid. From a regulatory and legislative perspective the United States and Antigua and Barbuda are not at cross purposes; we fundamentally have the same objectives, to ensure gaming operations are conducted in a prudent manner, incorporate stringent controls to mitigate and prevent underage gambling, money laundering, terrorist financing activities and promote responsible gaming."

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