WTO Rebuffs U.S. on Internet Betting Ban

[johnny1212]

GENEVA (AP) - The U.S. has failed to change its ban on Internet betting to comply with a World Trade Organization ruling that said the legislation unfairly targets offshore casinos, the global trade body said Friday.

The ruling opens the door to possible commercial sanctions against the U.S.

In a 215-page decision, a three-member WTO compliance panel sided with the twin Caribbean island nation of Antigua and Barbuda, which has argued that Internet gambling is a lucrative source of revenue and provides an income for hundreds of islanders.

The Geneva-based trade referee has said Washington can maintain restrictions on online gambling, as long as its laws are equally applied to American operators offering remote betting on horse racing.

Shares in London-listed gaming stocks rose after the announcement. Leisure & Gaming PLC gained 10 percent to 19.5 pence (38.2 cents), while PartyGaming PLC rose 4.5 percent to 52.25 pence (10.2 cents), after initially surging by 16 percent. 888 Holdings PLC increased 2 percent to 123.5 pence ($24.22).

"It vindicates all that we have been saying for years about the discriminatory trade practices of the United States in this area, and we look forward to the United States opening its markets," Antiguan Finance Minister Errol Cort said in a statement.

Washington claimed victory in the WTO's initial ruling two years ago because the body recognized its right to prevent offshore betting as a means of protecting public order and public morals. But the U.S. acknowledged Friday that the latest decision was a setback.

"The compliance panel did not agree with the United States that we had taken the necessary steps to comply with the WTO recommendations," said Gretchen Hamel, a spokeswoman for the office of the U.S. Trade Representative. She added, however, that "nothing in the panel's report undermines the broad, favorable results that the United States obtained from the WTO in April 2005."

Washington still has yet to say if it will appeal the compliance panel's findings. A final ruling upholding Antigua's claims would allow the twin-island nation to seek trade sanctions on the United States for its failure to comply.

To avoid the penalties, the U.S. government would then have to either permit Americans to gamble over foreign-based sites or eliminate exceptions for off-track betting on horses, including over the Internet, as permitted under the 1978 Interstate Horseracing Act.

Nevertheless, it appears unlikely that the U.S. will ease access to companies with servers licensed in the nation of 80,000 people -- whose legal efforts were largely bankrolled by British-owned Internet gambling operators.

The U.S. Congress caught the industry by surprise last year when it added a provision to a bill aimed at improving port security that would make it illegal for banks and credit card companies to settle payments to online gambling sites. President George Bush signed it into law on Oct. 14.

The decision closed off the most lucrative region in a market worth $15.5 billion last year. Several British-based Internet gaming companies and a handful in Europe and Australia subsequently sold off or shut down their U.S. operations, losing around 80 percent of their combined business in the process.

The arrest last year of two British Internet gambling executives while traveling through the United States also highlighted the U.S. government's escalation in its battle against the industry.

Peter Dicks, the former chairman of Sportingbet, was detained in New York but released after former New York Gov. George Pataki declined to sign a warrant extraditing him to Louisiana, where he was wanted on charges of illegal online gambling. Former BetOnSports PLC Chief Executive Officer David Carruthers remains under house arrest in the St. Louis area awaiting trial on federal charges from the U.S. attorney's office based on the 1961 Wire Act.

Antigua filed its case in 2003, contending that U.S. restrictions on Internet gambling violated trade commitments the United States made as a member of the WTO. U.S. trade officials disagreed, saying that negotiators involved in the Uruguay Round of global trade talks clearly intended to exclude gambling.

Antiguan authorities also argued that restrictions barring U.S. residents from betting at offshore casinos were harming efforts to diversify its economy. Antigua, a former British colony in the Caribbean, had been promoting electronic commerce as a way to end the country's reliance on tourism, which was hurt by a series of hurricanes in the late 1990s.

There are 32 licensed online casinos in Antigua, employing 1,000 people and generating yearly revenue of around $130 million. Seven years ago, its casinos had annual income closer to $1 billion.

Antigua is the smallest country to successfully litigate a case in the WTO's 12-year history.

© 2007 The Associated Press.

[The Judge]

Originally Posted by johnny1212

The Geneva-based trade referee has said Washington can maintain restrictions on online gambling, as long as its laws are equally applied to American operators offering remote betting on horse racing.

To avoid the penalties, the U.S. government would then have to either permit Americans to gamble over foreign-based sites or eliminate exceptions for off-track betting on horses, including over the Internet, as permitted under the 1978 Interstate Horseracing Act.

The horseracing lobby will never allow the eliminiation of off-track betting over the internet. I believe that this is the best news the internet gambling industry has ever seen and that it will be the catalyst for the eventual legalization of online gambling in this country.

[T100]

Moving forward, slowly and probably uphill but its progress

[The Judge]

For those that believe that the US will simply ignore the WTO ruling, the action described below is a direct result of the WTO's ruling against China in favor of a complaint filed by the US. As noted in the article, this is a reversal of a 20 year old US trade policy. These things are taken very seriously and I am surprised to see the lack of interest in this matter here at Cappers Mall.

In major escalation, U.S. imposes tariffs on China
Action on paper could lead to other products
By: Steven Weisman
March 31, 2007
New York Times

WASHINGTON — The Bush administration, in a major escalation of trade pressure on China, said Friday that it would reverse more than 20 years of U.S. policy and impose potentially steep tariffs on Chinese manufactured goods on the grounds that China is illegally subsidizing some of its exports.

The action, announced by Commerce Secretary Carlos Gutierrez, signaled a tougher approach to China at a time when the administration's campaign of quiet diplomacy by Treasury Secretary Henry Paulson Jr. has produced few results.

The step also reflected the shift in trade politics since Democrats took control of Congress. The widening American trade deficit with China, which reached a record $232.5 billion last year, or about a third of the entire trade gap, has been seized upon by Democrats as a symbol of past policy failures that have led to the loss of hundreds of thousands of jobs.

Gutierrez's announcement has the immediate effect of imposing duties on two Chinese makers of high-gloss paper, one at 10.9 percent and the other 20.4 percent, calculated by adding up the supposedly illegal subsidies.

But trade and industry officials say future actions based on the department's new policy could lead to duties on imports of Chinese steel, plastics, machinery, textiles and many other products sold in the United States, if as expected they seek relief and the department finds that they are harmed by illegal subsidies.

Gutierrez said that the administration's step was based on careful study of Chinese subsidy practices and was being carried out irrespective of any pressure from Congress.

A spokesman at the embassy of China, Chu Maoming, said in Washington that China expressed "strong objection" to the Commerce Department announcement, which he said sets a bad precedent that could damage China-U.S. relations.

The U.S. stock market at first reacted negatively to the news, on fears that a trade war with China could erupt, harming the dollar as well as stocks of companies that rely on trade with China. But stocks later recovered, ending the day barely changed.
Beyond seeking a review of the new policy in coming months, China is expected to challenge it in federal court and also at the World Trade Organization, but not through imposing tariffs of its own on American goods, according to lawyers who have been representing China in the dispute.

Democrats in Congress hailed the announcement by Gutierrez but said they would continue in their efforts to force a tougher policy on China through various pieces of legislation. Many Democrats won their elections last fall in part by advocating a tougher policy on trade with China and other countries whose labor and material costs are much lower than those of the United States.

[hammink]

Originally Posted by The Judge

For those that believe that the US will simply ignore the WTO ruling, the action described below is a direct result of the WTO's ruling against China in favor of a complaint filed by the US. As noted in the article, this is a reversal of a 20 year old US trade policy. These things are taken very seriously and I am surprised to see the lack of interest in this matter here at Cappers Mall.

That's good to know. I didn't get excited about the ruling initially because I just assume the US will ignore any rulings that don't go its way, from the WTO, United Nations, whatever. The US always operates as if its above international law. That's why everyone hates us!

But if this is something the US has to follow, that is GREAT news!

[E_Wrecked]

I don't want to bring up the obvious points, but you know when someone opens it up like that they are going to bring up the obvious so...

Its obviously dumb that in a small part of the Desert in nevada it's ok. Never understood why it's not OK in Atlantic City for instance. However, I had a LAw Professor who was extremely infulential in the development of A.C. He ran the numbers by us comparing what the region brought in in estimated income both before and after the first casinos. Soooo many backdoor operations going on making twice as much as the legalized casinos during that time. The casino would eventually burn out most backdoor operations but some still exist probably with better odds/payouts whatever to stay competitive like most offshores do to retain business.

I honestly think we are moving in the right direction and most of us all will live to see the day when we can place a legal "future" bet outside of Vegas. As bad as I want it, this isn't an easy thing. The U.S has to put so many safeguards into place to make this work right. You have to be careful of people using it for money laundering, trafficking it opens up the Internet in the U.S for so many other things. If the U.S does it which I think they will they will want to keep it an internal system like lottery for instance. Soo many steps have to be taken in order for this to be a safe system. Hackers all kinds of weird stuff and how do you do it?? Do you let the proceeds go towards schools, old people and state road repair that kind of stuff? Or do you stick to the capatilistic approach we have and make it a free for all?

It's a lot to ponder. we won't see it during this President term but, I think we are going the right way. I don't think I ever argued in defense of my own government, I don't hate my g'ment but some measure have to be taken.

Also, do you have any idea how much law enforcement on every level (FBI, local, State) is on the take??? Every "ring" that gets busted always has at very lease 1 former or current law enforcement agent. This stuff moves up the ranks to congressman, governors, senators and again all the law enforcement. Income is being generated in a blind fashion and peole are getting their cut or it would be cracked down upon much harder. It's a shame but this stuff goes on.


Two things that did puzzle me about the arguments WTo presented

"In a 215-page decision, a three-member WTO compliance panel sided with the twin Caribbean island nation of Antigua and Barbuda, which has argued that Internet gambling is a lucrative source of revenue and provides an income for hundreds of islanders."


For hundreds of Islanders??? Hundreds? unless there is 1,000 people on the island I don't want to hear that crap. I've watched 3 different documentaries about some of the things the people do in other countries for money. Taking bets is a layup, who wanted want to do that all day?

It also went on to say this, and I quote...

"There are 32 licensed online casinos in Antigua, employing 1,000 people and generating yearly revenue of around $130 million. Seven years ago, its casinos had annual income closer to $1 billion."

Something doesn't jive because thats some serious scratch no matter how you break it up. People aren't starving over there that's for sure.

If the US DOES make it legal it's going to be tough for offshores to operate. You will still probably find traditionalist like myself hooking up with BJ, I think I might trust them more anyway HAHAHA

Well its a ton guys, thats all. Later

[E_Wrecked]

Originally Posted by hammink

That's good to know. I didn't get excited about the ruling initially because I just assume the US will ignore any rulings that don't go its way, from the WTO, United Nations, whatever. The US always operates as if its above international law. That's why everyone hates us!

But if this is something the US has to follow, that is GREAT news!

Yea, I just watched this thing about the coca leaves in Peruvia? I believe

All the stuff we imposed upon them, they really don't have any other exports that are as profitable. It brought up some other good points also that lose me at this moment. They also had an interview with the President there who was fighting hard to take a stand. He doesn't agree with the recreational value but the fact of the matter is thats how the indigenous people live.

Tit is what tit is

Crazyness

[The Judge]

Originally Posted by E_Wrecked

Two things that did puzzle me about the arguments WTo presented

"In a 215-page decision, a three-member WTO compliance panel sided with the twin Caribbean island nation of Antigua and Barbuda, which has argued that Internet gambling is a lucrative source of revenue and provides an income for hundreds of islanders."


For hundreds of Islanders??? Hundreds? unless there is 1,000 people on the island I don't want to hear that crap. I've watched 3 different documentaries about some of the things the people do in other countries for money. Taking bets is a layup, who wanted want to do that all day?

It also went on to say this, and I quote...

"There are 32 licensed online casinos in Antigua, employing 1,000 people and generating yearly revenue of around $130 million. Seven years ago, its casinos had annual income closer to $1 billion."

Something doesn't jive because thats some serious scratch no matter how you break it up. People aren't starving over there that's for sure.

Per the 2005 census, there were approximately 82,000 people in Antigua. As recently as 2003, over 1,000 citezens were employed by the sportsbooks licensed there which is a significant percentage of the population. Today, there are approximately 500 employed in the business.

The $1 billion that these businesses added to the GNP in 2000 is more than their total GNP in 2005. That is an incredible downward change to their economy in just five years.

[E_Wrecked]

Originally Posted by The Judge

Per the 2005 census, there were approximately 82,000 people in Antigua. As recently as 2003, over 1,000 citezens were employed by the sportsbooks licensed there which is a significant percentage of the population. Today, there are approximately 500 employed in the business.

The $1 billion that these businesses added to the GNP in 2000 is more than their total GNP in 2005. That is an incredible downward change to their economy in just five years.

agreed, but I find this to be more of a prohibition type thing. I think people sending money int he US to offshore is STRONGER then ever.

I think the downfall is a weak argument, you have to consider how much of a fad "poker" was in 2000 and thereafter. I know its still strong and some good players are out there even though I've never played table games in my life and never will.

POKER, POKER, POKER 24/7 sooo many people probably came into offshore wagering around that time. The internet was strong high-speed internet was getting popular.


It's something I'd rather not get in depth about but it's Americans/Brits making money over there. Which is cool with me, to each his own.

They convert US money at the tune of 2.7 to 1.

Crying poor mouth, unreal

[E_Wrecked]

2.7 to 1

I refuse to look past that in a pop of about 65,000

260 million US dollars during a "dry" market

seriously this is my last post Im gettign my credit card out and going to Antigua for work

later bro

[ChicagoHooch]

Good read, thanks for the info.