08 February 2008

Costa Rica joins fight for US compensation

The US’ recent withdrawal from its obligations under the World Trade Organization over online gambling issues has triggered another compensation claim, this time from the Central American nation of Costa Rica.

Costa Rica now joins Antigua in the pursuit of compensation following the US’ unilateral WTO withdrawal from its gambling commitments.

Costa Rica is host to a number of online gambling operators, including some online bingo games companies and free online bingo halls. Online gambling is a significant contributor to the small nation’s economy.

It’s speculated that the new claim could derail an agreement reached between the European Union (EU) and the US on the same issue due to the arbitration filing making it possible for the EU to reconsider the existing settlement. The EU’s deal attracted a lot of criticism from European online gaming and online bingo companies who will see the Costa Rican move as an opportunity to re-focus attention on the perceived lack of compensation offered by the US over its anti-online gaming policies.

"The decision by Antigua and Costa Rica to take the United States to arbitration will test the limits of the WTO process and squarely challenge the U.S. resolve to withdraw its GATS commitments," said Nao Matsukata, formerly Director of Policy Planning for US Trade Representative Robert Zoellick and now a Senior Advisor for Alston and Bird LLP.

"If the U.S. finds the decision of the WTO arbitrator unacceptable, under procedures outlined in the General Agreement on Trade and Services, it could unilaterally withdraw, creating an unprecedented crisis of confidence in the global trading system.

"The best solution remains for the US Congress to pass legislation that would create a legal and regulated framework for online gaming in the United States and for the United States to remain in the GATs schedule to provide all providers legal protection under the WTO."

Written by Bingo Lady

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