ANTIGUA: McDonald holds to new hope for gaming sector

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McDonald holds to new hope for gaming sector

Wednesday October 04 2006
ANTIGUA SUN
by Patricia Campbell


Director of Gaming Kaye McDonald has identified the probable impact of recent US legislation on Antigua & Barbuda's World Trade Organisation (WTO) dispute as the silver lining to the cloud of despondency that has settled over the international online gaming industry.

Widespread concern about the fate of Antigua's gaming industry intensified this weekend after the US senate passed legislation which will effectively ban its banks and other financial institutions, including credit card companies from facilitating payments to offshore gaming sites.

The bill has been designed to effectively prohibit gamblers from using credit cards, cheques and electronic transfers to settle online wagers, thereby cutting off the Internet gaming industry from its US clients, the largest single group contributing to the US$12 billion per year industry.

Despite the grim outlook for the industry, McDonald said that the legislation may well serve to prove Antigua's point that the US has imposed protectionist measures in contravention of its WTO agreements.

"One of the positive elements from this is that the basis for our case and the basis for the appellate body's decision is the fact that the US had such a pervasive remote gambling industry within its borders and what this particular legislation does is further entrench or institutionalise the discriminatory measure that the US is taking," she told the Antigua Sun.

"Essentially it is allowing exemptions for interstate horseracing, for interstate remote gambling and to me that is really a protectionist bill and protectionism at its highest!"

Currently, a WTO panel is reviewing existing American legislation to see if it has been brought into compliance with the international trade body's 2005 ruling in the case between Antigua & Barbuda and the United States. The review is expected to be completed by the beginning of December.

In the meanwhile, the director of gaming has given a word of caution to gaming operators, making the point that the conflict between the new legislation and the WTO ruling notwithstanding, Internet gaming companies must be mindful of potential penalties to be imposed by the US.

"The fact remains that the Senate has passed (the bill) and our operators must be very mindful of the legal risks involved. We expect them to take all that into consideration and look at their business continuity, look at their plans to embrace that going forward."

The legislation was passed in Congress over the weekend and will come into force once President George W. Bush gives his assent. The US president has indicated in the past that he is willing to sign such legislation.