Online plans to be revealed Politics
JOHN PUGH
Antigua on the offensive over WTO judgment
After years of being ignored, Antigua wants the US to heed the WTO judgment in its favour over online gambling.
WTO T
he Caribbean state of Antigua and Barbuda is looking to reignite its
dispute against the USA over the restrictions placed on the igaming providers licensed on the island. Antigua has employed the services of Levick, a Wash- ington DC-based PR and communications firm, in order to highlight the con- tinuing disagreement. It is the latest in a line of actions taken this summer by the Antiguan govern- ment; in July it assembled an executive team to address the issue and has also already approached the director general of the World Trade Organization (WTO) Pascal Lamy in an attempt to achieve a com- promise with the United States.
It is a judgement by the WTO back in 2004 that Antigua is trying to get enforced. It found that by banning Antigua’s online gaming operators from plying their trade in America, the US was guilty of violating the GATS (General Agreement on Trade in Services) and that
the US should open up its borders to allow Antiguan licensed operators to ply their trade or be subject to financial penalties. In 2007 the WTO approved sanc- tions against the US for non-compliance of up to US$21m (£13.0m) a year in damages, which has since accumulated to $120m (£74.2m). With the US choosing not to cough up, Antigua was given the go-ahead to break its own trade agreements such as by violating US patents to the value of the compensation, but it has declined to take this route. However, this might no longer be the case. Antigua finance minister Harold Lovell said at a gambling conference in Las Vegas last month: “Absent a rever- sal of the US government’s illegal blockade of legiti- mate commerce from our nation, Antigua is prepared to explore the right to exact sanctions on industries in the US.”
This underlines the sen- timent that Lovell had expressed in letters to prominent igaming opera- tors in order to help fund the $600,000 (£370,000)
campaign, which Bodog’s Calvin Ayre printed on his news blog. In it Lovell said: “We have agreed on a defin- itive strategy to leverage the intellectual property sanctions awarded to us by the WTO some years ago to bring increasing pressure on the American govern- ment to comply with WTO rulings or at least conclude a settlement with Antigua and Barbuda that will provide substantial value to the remote gaming indus- try and our economy to compensate all of us for the illegal US actions.”
Meanwhile Levick CEO Richard Levick has started the charm offensive by writing a piece for Forbes. He argued that the Wire Act, which is the main obstacle to the US fulfilling its GTAS commitments, needs reviewing: “Lawmakers and enforcers should also view the Wire Act in context. In light of all the complex legal issues that internet commerce has raised in the past two decades, isn’t it reasonable that a 1961 law governing wire communications ought to be revisited under any circumstances? Bear
Despite the reshuffle, the government appears to be pressing ahead with a reshaping of remote gambling legisla- tion and its plans could be revealed before the end of the year. Responding to a Parliamentary Question by Lib Dem MP John Push, new minister for gambling Hugh Robertson replied: “It is absolutely our intention to tackle the issue by regulating gambling at the point of consumption. Proposals to that effect will be brought forward later this year.”
POLITICSBRIEFS
CAMELOT HALTS APPEAL
National Lottery operator Camelot has decided not to proceed with an appeal against last month’s High Court judgment refusing permission for a judicial review of the Gambling Commission’s regulation of The Health Lottery. The company said: “Despite Camelot’s legal advice that it has clear grounds for appeal, it recognises that the prospect of further legal action will inevitably delay much-needed political action to close a loophole in the Gambling Act 2005, which has been used by The Health Lottery to position itself as a direct rival to The National Lottery. The Health Lottery’s recent
RICHARD LEVICK: FIGHTING ANTIGUA’S CORNER
in mind too the intent of the Wire Act, which then Attor- ney General Robert Kennedy saw mainly as a weapon against organised crime.
“The good news is that the DOJ has already showed some flexibility; notably, it reversed its posi- tion last year by exempting lotteries from Wire Act enforcement. Perhaps the tide is slowly turning in favour of Antigua. Yet this story is not just about gaming, nor is it just about Antigua. It is also about our own legal and competitive preparedness for the digital age, and how that pre- paredness affects our cred- ibility in the global marketplace.”
COMMENT Page 44
ANALYSIS
The one ace that Antigua does have in its hand is that the USA is suddenly invoking the WTO in a trade dispute with China over subsidised car parts. The USA can’t really expect China to abide by WTO rules while it is not prepared to do so itself. It is far more likely that the US will pay off Antigua rather than open its borders, despite the recent flexibility afforded to regulators with the reinterpretation of the Wire Act, so there may be no upside for the gambling industry. But Antigua would thrive on any kind of pay off, meaning that the gambling operators in the jurisdiction might benefit indirectly.
Robertson given gambling brief T
MINISTER
he recent shake up of the UK government by prime minister David Cameron also saw a new minister for gambling appointed in the shape of Hugh Robertson. Robert- son, MP for Faversham and Mid Kent, was already min- ister for sport at the DCMS and has been promoted to take the tourism and gam- bling briefs.
He said: “Having first got involved in London 2012 as a Shadow Minister in 2004, it is fantastic to have the opportunity to see the project through by helping to shape the crucial legacy period. Tourism is a key driver of the UK economy and I am determined to help
the sector capitalise on the events of this summer which have transformed our reputation internationally.” The previous minister for gambling John Penrose has been dropped, although Robertson defended his former col- league in Par- liament when Labour MP Dan Jarvis complained about the scaling back of the role of tourism minister. Robertson said: “We had a thor -
18 BettingBusinessInteractive • OCTOBER 2012
oughly excellent minister, my honourable friend John Penrose, who covered tourism, heritage and gam- bling. We now have a minis- ter who covers sport, tourism and gambling. I cannot remotely see that that is in any way a down- grade. There were three responsibilities before and there are three now - the maths are very simple.”
HUGH ROBERTSON: NEW MINISTER FOR GAMBLING
Ed Vaizey has also remained as a culture min- ister, with Maria Miller coming is as culture secre- tary, replacing Jeremy Hunt.
At the start of the year, under his remit of Olympics minister, Robertson did make some alarming com- ments about sporting cor- ruption being more problematic than doping, but appeared to have a healthy take on the UK’s integrity. He said at the time: “We’re reasonably clear that we can police the UK end of it. The much more difficult element is how you police illegal syndicates probably operating a long way away from these
shores.”
Robertson’s first few tasks as minister for gam- bling will be tackling the tri- ennial review of gaming machines stakes and prizes and monitoring the progress of the latest Levy agreement. Coin-op trade association BACTA has since revealed that Robert- son’s predecessor Penrose had views that differed from suggestions made by the industry on the subject of stakes and prizes and there- fore a change in minister could be to the industry’s benefit. Robertson will also have to handle the govern- ment’s proposals to change its regulation surrounding online gaming.
announcement that it is to launch a mid-week draw next month only serves to underline the urgency with which the government needs to act.”
GAMING MACHINES SEIZED
Forty nine illegal gaming machines have been seized in raids on clubs across Haringey. Haringey council enforcement officers carried out Operation Elgar with the Met police and the
Gambling Commission in a crackdown on illegal gambling. The two-day operation saw premises in Green Lanes, West Green Road and Lordship Lane, targeted after concerns were raised by the Gambling Commission about illegal ‘black horse’ gaming machines in social and snooker clubs. The multi-agency op is the second of its kind to be carried out in the borough, taking the total haul of machines seized to 93.
SHOP RAISES GREYHOUND FUNDS
A recently opened William Hill Betting office on Redcar’s busy high street supported the Retired Greyhound Trust through a special charity fund-raising day on 22 September and raised about £500. After recently reading an article about the work of the Retired Greyhound Trust (RGT), Catherine
McKenzie, shop manager at the Redcar William Hill Office, decided to organise the charity day. She said: “This is a great opportunity to get the public and our customers involved to support the Retired Greyhound Trust, a wonderful charity that is close to our hearts. The Trust does an outstanding job, finding homes for over 4,000 racing greyhounds each year.”
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