The truth about Antigua as an offshore gaming jurisdiction

Christopher Costigan, www.sports911.com

With Olympic Sports (www.thegreek.com) slated to make a move from Jamaica Sports to the tiny island of Antigua come July, customers may be relieved to know that the later jurisdiction is a much safer place to operate than is Jamaica.....in more ways than one.  Nevertheless, Antigua does have its downside.

First and foremost, the government in Antigua is corrupt (witness allegations made against long time Premiere, Lester Bird) and doesn't live up to its word.  Make no mistake about it, the fact that Antigua maintains such a stellar reputation as an offshore gambling jurisdiction has more to do with the businesses that operate there rather than any regulatory body overseeing licensees.  Unfortunately, the government has allowed the likes of Aladins Gold to operate on the island and officials there did nothing when the business closed shop, stiffing all players in the process.  

For the most part, the government of Antigua does support and protect its licensees.  Just don't get on their bad side.  In 2001, Sports Off Shore owner, Bobby Eremian, was graciously escorted from the island in the middle of the night wearing only his pajamas to face charges in the United States stemming from tax evasion.  Eremian at the time was among the most outspoken in regard to Antigua's insistence on taxing operators as well as their "big brother" prospect of placing recording devises on servers.  Well, if it is any consolation to would be operators and players alike, Eremian has returned to the island after serving time in a New England prison....so perhaps he has made amends with those Benedict Arnolds.  

Antigua wants - and probably should receive - a nice slice of the pie from its offshore gaming industry.   They've delivered in terms of infrastructure and a pleasant working environment (barring the Eremian situation of course).  With a recent precedent setting World Trade Organization decision, Antigua officials pleaded their case that the United States government's stance on internet gambling had stymied the island nation's economy.  They failed to realize - or otherwise ignored the fact - that a number of licensees (BetonSports included) left the island due in part to Antigua's greed.

Antiguans are pretty savvy people for the most part so it doesn't surprise me that this tiny nation with a population of just over 60,000 would be at the forefront of a billion dollar industry.  Antigua's economy is the second strongest in the Caribbean after Barbados.  In terms of beauty, safety and stability, Antigua does rank well above average.  

Take away World Wide Tele Sports (WWTS), World Sports Exchange and to a lesser extent, the much underrated Sports Off Shore, and Antigua no longer plays a serious role in the world of offshore sports betting (though they still reign supreme when it comes to online casinos even with Curacao, Costa Rica and Quebec's Khanawake reserve now serious competitors in this arena).  Bottom line: Antigua gaming is nothing without its operators.  The island will be fortunate to add another premium wagering company to its stable, assuming everything goes according to plan with Olympic Sports.  

Some of us are still left with a sour taste in our mouth over the Aladins affair and its allowance of Starnet (now World Gaming) to sublicense operators residing in the United States for a mere $20,000 or less a pop.  At the same time, We'd be remiss to ignore the fact that the Antiguan government has shown strong resolve in standing up to U.S. politicians and America's policy on internet gambling.  

Outside of the Eremian situation, Antigua has been good to its operators.  Gary Collins, a highly regarded member of the Antigua gaming board who will never be appointed Directorate of the Gaming Board because he is too honest, sat by Jay Cohen's side throughout his trial related to violation of the "Wire Act".  Cohen co-founded Antigua-based World Sports Exchange and returned back to the States to fight charges against him, ultimately losing and serving an 18 month prison sentence (Cohen was released last month).  

Olympic moving to Antigua from Jamaica is a wise decision.  Jamaica is a very dangerous island where machete attacks happen in broad daylight while the local police are too busy smoking reefers.  Its government will easily cave in to the pressures brought on by the United States (or in Olympic's current case, Canada).  The owner of Olympic Sports, unlike many of his colleagues, is not an American citizen (he is Greek, having attending university in the States and continued to reside there).  In all cases related to U.S. law enforcement action against online gambling entities, U.S. citizens were the targets with the possible exception of those individuals operating and/or banking on American soil.  

Antigua will continue to flourish as a gaming jurisdiction but not because of any regulatory body that has proven to do squat in the past.  A strong community of wagering companies has formed there and Antigua only deserves credit for providing this group with its blessing to operate and the infrastructure to do so.  

Originally published on May 26, 2004 (10:02 am EST)