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Antigua Against US New Legislation

There are talks between some UK-based online gambling firms and the government of Antigua of challenging the new Unlawful Internet Gambling Enforcement Act of 2006 of the United States. This Act has been added to the US Safe Port Act Sept 30th but has not been signed into law yet. The basic thrust of the law is to try to prevent the flow of funds from U.S. gamblers to online gambling websites. It enforces current laws regarding online gaming. It does this by requiring banks to monitor and block transactions to and from online gaming companies from US online customers. President Bush plans to review the new legislation later on this week.

Antigua who is willing to work with UK companies like Sportingbet, is determined to challenge what they believe as US protectionism on laws of internet gambling. Antigua has previously challenged US laws on internet gambling and has succeeded accordingly.

In 2005, the World Trade Organization (WTO) ruled that the laws on online gambling of the United States went against WTO agreements after Antigua and Barbuda made complaints. Dr. John W. Ashe, the Ambassador of Antigua and Barbuda to the WTO, argued that the Americans, pointing out that two new banning proposals currently before the US Congress exacerbated the situation. The WTO ruled that the Appellate Body in April 2005 upheld one of Antigua and Barbuda's complaints over US prohibitions thus preventing US banks and major internet search engines from doing business with gambling companies on the island. The WTO has given the US until April 2006, to implement its decision.

This November a decision will be issued from a WTO panel if the United States has been complying with the rules. This has not been the first time that the US has not complied with certain rules and regulations of WTO.

At present, Antiguan officials are building a case against the new US legislation which they believe is as contrary to the decision of the WTO. According to these officials, the new legislation puts the United States on a direct collision course with the WTO making their case much stronger.

Mark Mendel, a lawyer who represents Antigua in WTO believes that the new United States legislation makes their case much stronger when presented to WTO.

Nigel Payne, Chief Executive for Sportingbet which is licensed to operate in Antigua, visited Antiguan authorities since Tuesday afternoon to discuss the said US legislation. This would allow the UK to help Antigua build the case against the new US legislation.