Gaming companies in Antigua & Barbuda are carefully monitoring
the progress of US legislation which may make critical financial
transactions with US-based clients illegal, effectively cutting off
income to the industry.
Nearly three weeks have passed since the US failed to meet the
deadline set by the World Trade Organisation's Dispute Settlement Body
(DSB) in relation to Antigua & Barbuda's gaming case. Thus far
there have been statements of outrage from Minister of Finance and the
Economy Dr. Errol Cort and Ambassador to the World Trade Organisation
(WTO) Dr. John Ashe and a statement of solidarity from Caricom.
What there has been little evidence of are signs of distress or changes in the operations of the local gaming industry.
This is not surprising, former Director of Gaming Ron Maginley
said. He points out that while the issue decided on by the WTO is
important to the development of Antigua's gaming industry, the more
pressing issue for local gaming companies is the possibility of
legislation which could potentially make credit card transactions
between offshore gaming companies and US residents illegal. Credit
cards are currently used as a convenient payment method by clients of
gaming companies.
"What would be a problem is where they make it a federal offence
because then you would have US financial institutions aiding and
abetting individuals in committing a crime," he said. "In such an
instance, I think we would see many US financial institutions that
would just start to impose measures that truly seek to deny the
companies access to US financial services. This is where the danger
really comes from."
Maginley referenced two bills for prohibition legislation which
have gone before Congress this year, without appropriate moves from the
US government to prevent their passage.
"There have been no steps by the Department of Trade and Commerce
or by the White House, ensuring that such measures are not tabled
because the WTO has made a ruling that the imposition of such measures
would be contrary to its GATS agreement (the General Agreement on Trade
in Services)," he said.
This pending legislation has also been of concern to the
government. Last month, as the WTO deadline approached, Ambassador Ashe
told the Dispute Resolution Body that he was troubled by two bills,
"Unlawful Internet Gambling Enforcement Act of 2005" and the "Internet
Gambling Prohibition Act", which were "about as directly contrary to
the recommendations and rulings of the DSB as could possibly be
imagined.
"Not only do these bills do nothing to provide Antiguan operators
with any access whatsoever to the vast American gambling market, but in
fact each would further entrench the anti-GATS nature of United States
gambling law...."
This concern was echoed by Dr. Cort who noted earlier this month
that the laws "would, in fact, further entrench the discriminatory
nature of the United States' approach to cross-border gambling and
betting services."
ANTIGUA SUN
