Online Gambling Laws Costs American Market Money

Gambling News - July 31st, 2009 - Written by Glen

In the early 2000's, Antigua had filed a dispute with the World Trade Organization, with the target listed as the United States. Upheaval was caused by America's surge in online gambling restrictions, as Antigua claimed that their income had been negatively impacted. The WTO agreed to hear the case, and the ball was set rolling.

In March of 2003, Antigua had brought the issue over to court, citing the General Agreement on Trade in Services (GATS). They claimed that the United States had violated this agreement. The GATS would state that "Other recreational services" would remain untethered as trade over the Internet. Three American laws, on a federal level, were found in violation of this document. Furthermore, several states also had laws that woudld be found in noncompliance with the GATS. The World Trade Organization's panel ultimately ruled in favor of Antigua, saying that the United States were not commiting to the agreement.

Negotiations between the two parties commenced, but a resolution had not been met. The United States fired back, claiming that the restrictions were to promote "moral defense," but their point was moot. The WTO Arbitrator gave the United States until 2006 to change the way they would perceive online gambling. So what happened, you might ask yourself? The UIGEA was spawned. Online gambling had been further restricted, but this time the banks were the targets, rather than citizens.

Antigua and the United States would once again meet in court to discuss the agreement and the laws, and once again the WTO ruled in favor of Antigua. In 2007, the United States ultimately attempted to change their commitment under the GATS. Several countries that offered a form of Internet gambling joined the pursuit against the United States, and many of them were seeking compensation.

In the end, Antigua demanded $3.4 billion dollars worth of United States Intellectual Property rights, claiming that this is how much they would ultimately lose during the proceedings. This would mean that Antigua would be exempt from honoring U.S. patents, copyrights, and trademarks, allowing them the ability to produce, manufacture, and sell anything under the United States IP umbrella, up to a limit of $3.4 billion dollars. The U.S. claimed this to be too mcuh, told them $500,000 sounded more realistic, and got shot down. Ultimately, the Antiguan governement was awarded $21 miillion dollars in IP suspension anually.

Now, in 2009, the European Union has filed a similar suit with the World Trade Organization. While the two governments are attemping to settle the issue out of the Organzation's grasp, the EU may demand compensation from the United States. The European Union seeks to have the UIGEA removed. Capitol Hill has seen many groups, both in the government and the private sector, fighting to make this happen. The results could potentially be catastrophic if the European Union is awarded the same Intellectual Property suspension, as they have more methods in manufacturing patented and copyrighted materials than the smaller nations, such as Antigua and the Isle of Man.

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