Update on Online Gambling by CP's Legal GuruAllyn Jaffrey Shulman Talks About Antigua |
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I wish our readers a very prosperous and happy new year. I am going to start reporting at least weekly and always on Wednesdays to keep you informed on legal and political gaming news and analysis of such.
I have recently noticed that after I write a story, the same story finds its way to other sites without proper attribution. For example, I spoke with American Gaming Association president Frank Fahrenkopf who told me the story about Senator Frist going to Iowa and meeting up with Leach where there was talk that a secret deal was struck whereby Frist would get Leach's anti-gaming bill passed and Leach would help Frist run for president. After I broke that story, it appeared everywhere without attribution or a source.
Another example: I reported on the World Trade Organization case. As you may remember, last year the WTO ruled in favor of Antigua and Barbuda against the U.S. regarding the online gaming issue. Antigua asserted that the U.S. was discriminating against Internet casinos based in its jurisdiction. Antigua's position was that the U.S. government's interference with a multibillion-dollar industry violated international trade rules and was simply a ploy to keep tax revenues within the borders of the U.S. The WTO agreed.
I personally spoke with a representative from the WTO in Geneva and reported as follows:
"I predict the WTO will rule in Antigua's favor. Various disputes have come to this point and if there is no compliance, the complaining party is granted permission for sanctions. The complaining country figures out the level of trade lost and they ask for that level of sanctions. Then there is another examination in order to justify the level of sanctions. The winning country then imposes sanctions upon the offending country. Monetary sanctions are common. For example, the winning country can raise tariffs on products up to a level of the amount lost. If they don't want to impose tariffs, they can fashion other remedies. For example, under the intellectual copyright rules, where they would usually enforce copyright rules, they may not enforce an American copyright."
After I reported this, many sites reported that after the WTO rules in favor of Antigua, they will likely impose intellectual copyright sanctions. Actually this is wrong. The WTO did tell me that this is a possible sanction for a small nation; however, I just left Antigua and I learned this is not a sanction contemplated by Antigua at all.
First, allow me to digress. Antigua (properly pronounced an-TEE-guh, not an-tee-gwa) has a population less than 80,000, with breathtaking beaches, crisp fresh air, and miles of stunning scenery.
Nestled within all this beauty sits the First Caribbean Financial Center, which houses the Financial Services Regulatory Commission. (FSRC) I had the pleasure of meeting with the CEO, Leroy King; the director of gaming (which is a division of the FSRF), Kaye McDonald; and a regulatory department manager, Cliff Williams.
The director of gaming, Kaye McDonald is a highly articulate, knowledgeable raconteur who explained all about the Gaming Division, the rules and regulations, and certification. This will be the subject of future articles.
The CEO, Leroy King spoke about the philosophical underpinnings of the Regulatory Commission. I was surprised to learn that Antigua has only licensed 38 gaming companies. Antigua is not in the business of "selling" licenses, but rather, it takes regulation very seriously. The companies that the country licenses are not shells, but living breathing companies like Burger King, with known owners and business conducted in a manner that is open and available for public inspection. The companies are not only regulated, but independently audited to make sure they are conducting business in an aboveboard manner. These are wholesome businesses that benefit society by providing jobs, helping the economy and paying handsomely.
The WTO representative in Geneva told me that a place as small as Antigua and Barbuda might engage in an intellectual property sanction; however, I was specifically told by the powers that be in Antigua, that they have no intention whatsoever of requesting such sanctions at this time.
Rather than ask for sanctions, Antigua will propose to the U.S. a framework for consolidated supervision. In other words, Antigua will propose a brilliant plan that includes information sharing, international cooperation, onsite inspections, and other methods aimed at the prevention of financing terrorism, money laundering, and underage gambling.
Although Antigua is a small developing nation with limited natural resources, it has a world of knowledge and the experience to teach the U.S. a lot in the area of regulation. As a matter of fact, members of our government have already visited Antigua in order to learn from this tiny developing nation.
I have a copy of Antigua's Regulatory Rules and Regulations and also a copy of the Proposed Framework for Consolidated Supervision. I will soon write a longer, more detailed article on this subject.
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