Antigua May be Rewarded Billions of Dollars Friday From Internet Gambling Dispute With US

Friday is the day we are to learn how much the US will have to pay in damages towards the tiny Caribbean nation of Antigua.  The World Trade Organization this year ruled that the United States Internet gambling ban violates world trade agreements, primarily because its own legislation prohibits offshore gambling ventures while allowing its own onshore horse racing industry via an exemption the WTO deemed to be "protectionism" .

This ruling allowed an opportunity to European Union nations to likewise seek compensation totaling in the billions.

Steve Vaughan of 4Flush.com writes that "the issue is in front of the arbitration panel because the U.S. and the two-island Caribbean nation could not settle the dispute through normal negotiations. Antigua and Barbuda is asking for $3.4 billion in damages while the U.S. countered with only $500,000."

European Union Trade Commissioner Peter Mandelson had harsh words to say about the US position.

"The U.S. has so far opted for compensation to make right what is wrong," said Mandelson. "I don't think compensation does that job."

Meanwhile, Internet trade organization iMEGA.org is still awaiting a long overdue decision regarding the policy enforcement of the Unlawful Internet Gambling Enforcement Act, which was passed into law just over a year ago.  iMEGA argues that the law is "unconstitutional" and they are seeking a temporary restraining order to prevent the UIGEA from having any teeth.  That law would require financial institutions to monitor and seemingly prevent such online gambling transactions.

On Thursday, iMEGA filed its objections with the Department of Treasury over the agency’s proposed regulations regarding the Unlawful Internet Gaming Enforcement Act (UIGEA).

"The new law, attached in the waning minutes of the 109th Congress to the unrelated Safe Ports Act with very little input from Members of Congress, is a misguided and potential harmful attempt to regulate Internet content," iMEGA said in a statement. 

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Christopher Costigan, Gambling911.com Publisher CCostigan@CostiganMedia.com

Originally published December 13, 2007 11:13 pm EST