Antigua And Barbuda To Help UK Draft E-Gaming Regulations

by Amanda Banks, Tax-News.com, London

13 February 2007

The Division of Gaming within Antigua and Barbuda's Financial Services Regulatory Commission has announced that the country expects to play a key role in developing international regulations and legislation for remote gambling following publication of the UK Government's communique regarding the 2006 International Summit on Remote Gambling.

The communique, released by the UK's Department of Culture, Media and Sport (DCMS) on 29th January, highlighted the approval by the Summit's delegates for the proposal to set up an expert working group to advise on the scope for developing international minimum standards for regulating remote gambling.

L. Errol Cort, Antigua and Barbuda's Minister of Finance and the Economy commented: “Antigua offers its unique experience and insight wholeheartedly in developing regulatory standards for the international remote gambling industry as part of the expert working group proposed by the DCMS.”

Kaye McDonald, the jurisdiction's Director of Gaming, also highlighted Antigua's credentials for regulation of its online gambling industry, adding: “The regulations that Antigua has in place for online gambling are respected globally and have been a contributing factor in winning the WTO ruling against the US in 2005.”

The Antiguan government claims that the e-gaming regulations it has put in place are more stringent than those imposed by the US on its own legal gambling industries.

It was reported last month that the WTO's Dispute Settlement Body's panel is likely to rule against the US on its spat with Antigua and Barbuda over e-gaming. The Panel has sent a confidential version of its ruling to the parties, and a US Trade Representative spokesperson, Gretchen Hamel, confirmed that the Panel did not agree with the United States' contention that it had taken the necessary steps to comply with the WTO's 2005 ruling in Antigua's favour.

The US government has been cracking down hard on offshore e-gaming firms, arguing that they suck billions of dollars out of the country, and have the potential to act as a conduit for money laundering. Last year, the US has passed the Unlawful Internet Gambling Enforcement Act of 2006, which while expanding domestic opportunities for legal gaming, effectively bans all international and inter-state online gaming, by making it illegal for banks and credit card firms to make payments to such internet operations.

The Panel's final ruling will be issued in March or April, after the parties have had an opportunity to make further submissions. Hamel downplayed the decision last month, arguing that: "The panel's findings issued today involve a narrow issue of federal law."

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