Antigua Battles the US - The WTO to Follow
The Controversy began when the United States unilaterally withdrew from its online gambling obligations set forth in the terms of the World Trade Organization treaties. The US withdrew in support a discriminatory policy toward online gambling.
As a result of this action, the United States is required to consider compensation for claims not only from Antigua and Barbuda but from WTO members impacted by its actions - and over 7 countries including the EU block of 27 nations have given notice of intention to claim.
The Reuters news service, reported that European online gaming companies which have been shut out of U.S. Poker & U.S. Casino markets have urged the European Union to demand as much as $100 billion in compensation, although the best solution is still believed that Washington move to reverse discriminatory legislation attacking the online gambling industry. Major US firms in industries vulnerable to copyright exceptions have also expressed alarm at the potential dangers to US business of the WTO community.
The United States initially offered concessions in other areas of trade to offset the online gambling restrictions, but these have been universally rejected and are unlikely to be accepted.
Assessing the US offer, Peter Power, a spokesman for EU Trade Commission
said "The U.S. (compensation) offer to date is insufficient and we continue to negotiate in order to improve it,"
Evaluating the plunge in the market value for European online gaming firms, lawyers will press for as much as $100 billion in compensation for the US shut down.
The United States representatives assert that the $3.4 billion requested by Antigua as compensation is far too high. It is anticipated that the European Block will demand at least 20 or 30 times that amount given the size of its online gaming industry, said one legal expert.
In a news conference in Brussels this week, Clive Hawkswood, Head of the Remote Gambling Association, "They have got themselves into a terrible mess and yet there is an easy way out for them," He said regulation would ease what the United States says are its concerns about money-laundering and consumer protection.
October 22 is the deadline for the United States to agree on compensation. It is well known that countries are lining up with claims of their own.
Lawyers interviewed by Reuters said the dispute could drag on for years while U.S. casino operators and Internet companies such as Yahoo! and Google are free to do business in Europe.