Protecting US casinos from competition ?

Up to 1999, Antigua and Barbuda was said to be the largest gaming jurisdiction in the world with over 112 online gaming operators. Now there are only 31 licensed companies in operation. The industry previously employed about 5,000 people. That has now fallen to below 500. The island estimates that since 1999, government has lost US$33.3 million in licence fees and over US$37 million in wages and salaries as the number of Internet gaming entities were forced out of business by US actions. Questioning the motive behind the US position in prohibiting the delivery of Internet gaming into the US from countries outside, Sir Ron said Internet Gaming challenges the supremacy of large American owned casinos that are fast becoming multinationals.

“There is a view that if a gambler has a choice of placing bets or gambling in the ease of his own home, he is more likely to do so than to incur the cost and spend the time involved in going to a casino or a betting shop. “It is understandable, therefore, why some may believe that the blanket ban on Internet Gaming is motivated by lobbies persuading US congressmen and senators to protect US casinos from competition,” said Antigua and Barbuda’s chief negotiator at the WTO. The trade association of American gaming companies estimate that total consumer spending in commercial casinos in the United States reached almost US$26 billion in 2001.

At the first hearing of the complaint by Antigua and Barbuda at the DSB, the US claimed that they had “grave concerns over the financial and social risks posed by Internet gaming activities to its citizens, particularly but not exclusively children.” But Antigua and Barbuda said it had made it clear to the US prior to the DSB hearing that the Internet gaming industry in Antigua is highly regulated and children have no access to it. “ We emphasised that gamblers are required to deposit funds before they can bet. To do so, they have to send a wire transfer from their bank accounts and provide their social security number, address and other means of identification. These strictly enforced rules make it impossible for children to gain access to the Internet gaming operations,” said Sir Ron.