What a tangled mess! The introduction of the UIGEA was a scandal in itself, and the battle over its legality continues around the globe. Now the Unites State’s responsibility to compensate for damages is in the hands of the WTO. Also in question by many is the country’s credibility and poor judgment. Do other countries also have a hand in the scandal, too?
It all began with the Safe Port Act, which was created to protect U.S. borders. Just fifteen minutes before the Act went up for debate, Representative Bill Frist attached the UIGEA bill onto the document without anyone’s prior knowledge. The Safe Port Act and its last minute addition passed almost unanimously. This unprofessional and sneaky lawmaking is what threw the U.S. into boiling water.
How could the U.S. have expected anything but trouble? Now they face lawsuits for violating International Trade Laws. The World Trade Organization (WTO) ruled that the U.S. could ban cross border gambling, but only if the same rules applied to American casino websites. The country appealed and lost again.
Now what! To further embarrass the U.S., they did something unheard of in the entire 12 years of WTO’s existence. They changed the GATS and withdrew their commitment of free trade for the gambling industry. The “contract” had been signed by all parties—need I say more?
Antigua and Barbuda are asking for a $3.4 billion in compensation claims. The WTO will also rule whether they can receive their compensations by suspending U.S. Intellectual Property Rights. The U.S. proposed $500,000 in compensation instead with the argument that the suggested claim was four times the amount of their entire economy. Since this lawsuit began, other countries affected by the UIGEA have jumped in. The U.S. may be ordered to pay up to $100 billion annually combined. The settlement discussions have been extended twice since no agreement could be reached.
The $500,000 statement was received by Antigua and Barbuda as an insult. They claim that profits from gambling industries are not reported to the government as the law does not demand it. It was also suggested that their failure to record these figures in the annual economic reports is based on a fear that the United States will target the companies.
The implication of the latter statement is very powerful. Do they mean that the U.S. is out to get anyone who makes money? This accusation seems far more insulting than the suggested $500,000 compensation. And how does Antigua and Barbuda expect to get a ruling based on…words? If there are no records proving how much money they have lost and will lose, can they really expect a spoken figure to hold up in court? Even if the numbers are not published in their economic records, it seems a bit odd that this income is not recorded elsewhere—anywhere! Are they being honest and reasonable, or is it their turn to stage the scam?
The conclusion of this case should be reached before the end of the year, but it will be a tough case to judge. It seems that parties on both sides of the fence have been less than honest. Hopefully the WTO will keep its integrity throughout this case, and the final judgment will be rational and just. As spectators, we’ll just have to wait and see.
By Victoria Maro
