Antigua Barbuda, World Trade Organization, US part 2

Antigua who?

Antigua Barbuda might not be one of the world’s economic superpowers, with annual GDP equivalent to around one tenth of Mark Zuckerberg’s estimated net worth ($13.5 billion as at March 2011 according to Forbes – that’s Zuckerberg not AB) but in online gambling terms they’re pretty significant.

They lay claim to being the first jurisdiction to license and regulate online gambling operators and over the last 15 years or so have become one of the world’s most prolific licensors of online casinos and sports betting sites.  Only tourism employs more people in Antigua Barbuda than the online gambling industry so ripples in net-gambling policy around the world make very big waves there.

Authorities in Antigua Barbuda have long been critical of US online gambling policy, believing it to be protectionist and in breach of WTO free trade obligations and in 2005 they took their case to the World Trade Organization claiming $3 billion in lost earnings annually. The WTO sided with Antigua Barbuda – on the issue of whether there was a breach of trade obligations anyway – not so much on the quantum of lost earnings.  They said $21 million was closer to the mark.

But the fact remains, tiny little Antigua Barbuda doesn’t mind rolling up its sleeves and throwing a few punches at the mighty USA in this regard.

The black Friday online poker indictments (including AB based Absolute Poker) may see Antigua Barbuda V USA at the WTO round 2.  At least that’s the noise that’s coming out of Antigua Barbuda.

Finance Minister Harold Lovell had this to say:

“I am concerned that at this point in time United States authorities continue to prosecute non-domestic suppliers of remote gaming services in clear contravention of international law”

Mark Mendel, the Caribbean government’s legal advisor had this to say:

“I don’t think there’s another country in the world that puts people in jail for engaging in trade that’s lawful under international law…”They’re [the online poker rooms] not defrauding anybody. They’re not stealing money from anybody. They’re just trying to run their businesses.”

Not that these noises will have US authorities quaking in their boots.  Their last loss before the WTO cost them less than Dick Cheney spends on bullets for his personal hunting expeditions.  And by the time any WTO action played out to its conclusion, I suspect the online gambling landscape in the US will be very different from what it is now anyway.