|
|
| Author |
Message |
Bullajami
Uber Squid
Joined: 03 Sep 2004
Posts: 8838
Location: Mrs. Bull's Doghouse
|
 Posted: Tue Dec 18, 2007 12:24 pm Post subject: EU-US Agreement? |
 |
|
| Quote: | US Facing Online Gambling Firms Quietly Relieved Over EU-US Agreement
While the European online gambling firms still feel as if they are suffering from a bad hangover after Monday's decision by the European Union to settle with the US government over trade concessions related to online gambling, US facing sites are quietly relieved.
Many of the later continue to prosper in the North American market despite restrictions placed on them last year when a law was passed essentially making it illegal to bet on line and play poker.
The Unlawful Internet Gambling Enforcement Act (UIGEA) was added in Conference Report 109-711 (submitted at 9:29pm on September 29, 2006) as part of the unrelated Safe Port Act, which was passed by the House of Representatives by a vote of 409-2 and by the Senate by unanimous consent on September 30, 2006. Due to H. Res. 1064, the reading of this conference report was waived.
European online gambling firms, many of which were trading publicly at the time, were blindsided by the bill's late night passage. All online gambling sites listed on the London Stock Exchange or similar markets have since stopped taking United States players due to the passage of the Act, while most non-public companies (most of which operate from Costa Rica, Antigua, Panama, and the Kahnawake Reserve outside of Quebec, Canada) have announced an intention to continue taking US customers. PartyGaming Plc, which runs PartyPoker.com, had its publicly-traded stock drop almost 60% in 24 hours as a result of this bill being passed. The company was moved from the FTSE 100 to the FTSE 250 Index on October 11.
Antigua and the United States have been involved in a long-running World Trade Organization dispute over U.S. restrictions on online gambling. The WTO ruled on January 25, 2007 that the U.S. is in violation of its treaty obligations by not granting full market access to online gambling companies based in the island nation. On March 30 the WTO confirmed the U.S. loss in the case.
On June 19, Antigua filed a claim for USD $3.4 billion in trade sanctions against the United States, along with a request for authorization to ignore U.S. patent and copyright laws. This claim was filed a day after similar demands for compensation made by the European Union.
But the EU on December 17 decided to settle with the US regarding its own position on Internet gambling and trade. Instead the EU opted for trade concessions from the US that would allow new trade opportunities within certain sectors of the US.
Although the EU stated that it will also "continue to press for non discriminatory treatment in U.S. internet gambling legislation," the settlement takes pressure off the US to alter its current trade policy relative to online gambling and restrictions imposed by the passage of the UIGEA.
For many a US-facing online gambling website, this turned into a blessing in disguise.
"Regulation would be bad for our industry," said an operator of one of the industry's largest firms. "As soon as Vegas and the European big boys move in, we are pretty much toast."
That's the consensus of many an Internet casino, poker and sports betting website operating in the Caribbean and Canada, where it is widely agreed that they would have a difficult time competing with the likes of a Ladbrokes, William Hill or even an MGM Grand.
But this doesn't mean these firms do not want some form of "legality". Since passage of the UIGEA, one of the biggest obstacles for these companies still taking action from the US has been an inability to expedite payments during the previous 5-business day window (some firms paid out next day). This is due to limited third party money transaction processors. A number of the more feasible options like Citadel Commerce and Neteller cut off relations with US-facing online gambling firms following passage of the UIGEA.
These companies are more focused on a legal challenge brought forth by iMEGA.org, which quietly filed for a temporary restraining order against policy implementation for the UIGEA. Results of a hearing this past September are well overdue. A positive outcome would essentially make the UIGEA ineffective - at least temporarily - by ensuring the banking institutions are not required to police transactions related to web gambling (something they already claim is nearly impossible to do). The iMEGA ruling would likely loosen the reigns of payment processors while re-enforcing the "grey area" and legal ambiguity related to Internet gambling that has managed to keep European firms out of the US market over the past year.
-----
Christopher Costigan, Gambling911.com Publisher CCostigan@CostiganMedia.com
Originally published December 18, 2007 8:18 am EST
|
|
|
| Back to top |
|
 |
badboywes
Never Satisfied
Joined: 03 Mar 2007
Posts: 2499
Location: Barstow Ca
|
| Posted: Tue Dec 18, 2007 2:48 pm Post subject: |
|
|
| Someone who understands all of the political agenda here please give us your opinion of this announcement? |
|
| Back to top |
|
|
JohnMC1984
Joined: 15 Feb 2006
Posts: 13
Location: Houston
|
| Posted: Tue Dec 18, 2007 7:55 pm Post subject: Summary Of WTO Case |
|
|
This is a very complicated case and also a very important case for our cause. I will attempt to explain in a very abbreviated manner that should help the understanding of what is happening. So lets start from the beginning.
1. Antigua brings WTO case against USA saying they violate the WTO by not explicitly excepting all off shore gaming companies.
2. USA says we have a moral objection and invokes the moral clause of the WTO.
3. WTO rejects USA's claim about moral clause because USA has explicit legal gambling online in the form of horse racing, state lotteries, fatansy sports and whatever else.
4. Antigua wins case against USA.
5. USA appeals and goes through all appeals processes in the WTO and USA loses every appeal. Antigua wins case and awaits from WTO to find out what sanctions they can impose on USA to try to get USA to comply with WTO and allow offshore gaming sites.
6. USA in a very bizzare move decides to withdraw its commitment to the GATS section of the WTO treaty. Gats is one of the most important parts of the WTO that covers many critical industrys like agriculture. The GATS part of the treaty also explicity says the USA is going to open up its gaming market (poker and other stuff) to offshore comapnies.
7. Because of the USA withdrawing from GATS, other countries apply onto the Antigua case as interested partys. The other countries include the EU, India, Japan, Canada, Costa Rica.
8. The EU ask for a huge sanction of $100 billion against the USA.
9. The EU, Japan, and Canada agree to a settlement which is what that article talks about. This was unwelcomed news for us as we wanted the EU to push for allowing the poker sites explicit legal access to the USA (i.e. Party Poker coming back to the USA).
10. Antigua, Costa Rica and India have not agreed to any deal and the USA still has to settle a deal with those countries or face sanctions.
11. Antigua is a small country of 69,000 people and has no trade with the USA that is worth anything.
12. The WTO will usually allow a country the right to impose tarriffs on a country in order to impose the sanctions.
13. Antigua is asking for sanctions of $3.4 billion annually to impose on the USA.
14. Since Antigua has no other trade with the USA, they are asking for the right to violate intellectual property rights of USA companies (Software, movies, music, from companies like Microsoft etc...).
15. The final WTO ruling on how much sanctions Antigua can impose and what type of sanctions (intellectual property rights) is due out any day now.
16. Bottom line is we need the WTO to give Antigua the right to violate intellectual property rights. If this happens then we could see explicit legalization of online poker very soon. So keep your fingers crossed.
Also, if you have not joined the PPA then please do so. They are fighting for our right to play poker online and live in a legal and safe environment. It is free to join. I do not work for the PPA but I am a member. www.pokerplayersalliance.org.
I hope this helps.
John |
|
| Back to top |
|
|
Bullajami
Uber Squid
Joined: 03 Sep 2004
Posts: 8838
Location: Mrs. Bull's Doghouse
|
|
| Back to top |
|
|
JPFisher55
Joined: 21 Feb 2006
Posts: 83
|
| Posted: Wed Dec 19, 2007 11:38 am Post subject: |
|
|
Good summary John. I would add one more point. To complete its withdrawal from its WTO gambling obligations, the US must actually pay the compensation agreed to in deals or awarded in WTO arbitration. The US-EU deal will require some action by at least the Senate, contrary to claims by USTR. The whole process will take into 2009.
It is separate from the Antiqua case which could result in Antiqua receiving the IP sanction. This will likely result in Congress forcing the Bush administration to comply with the WTO decision and end the withdrawal process. |
|
| Back to top |
|
|
krazytxan
Texas Matriarch
Joined: 26 May 2004
Posts: 4574
|
| Posted: Wed Dec 19, 2007 7:35 pm Post subject: |
|
|
This really irritates me.  |
|
| Back to top |
|
|
JohnMC1984
Joined: 15 Feb 2006
Posts: 13
Location: Houston
|
| Posted: Wed Dec 19, 2007 8:19 pm Post subject: |
|
|
Thanks JP. I see you post on 2+2 a lot, and as you know Jay Cohen has said the decision will be announced this Friday. I just want to let eveyone else on here know that Friday is the day we find out. Lets hop Antigua gets the right to violate intellectual property rights of the USA. That would help us get online poker back in the USA quickly.
Also, during the day I am at work, and they block my access to these forums and ones like it. So I can not get updates during the day. If anyone hears what the decision is and has a second to email me then please do, my email is JohnMC1984@hotmail.com. Thank you.
John |
|
| Back to top |
|
|
JPFisher55
Joined: 21 Feb 2006
Posts: 83
|
| Posted: Wed Dec 19, 2007 11:42 pm Post subject: |
|
|
John, I'll try to remember. G911 will have the decision fairly quickly if you can access it at work.
Keeping my fingers crossed for Friday. This WTO ruling is far more important than the EU-USTR deal. |
|
| Back to top |
|
|
|
|
