U.S. Internet Gambling Policy Gets WTO Slap
by Rod Hughes
The U.S. government’s crackdown on Internet gambling not only got it in hot water with the World Trade Organization (WTO) but also has moved Costa Rica’s Foreign Ministry to seek compensation for losses to its economy, reports the weekly The Tico Times.
The crackdown caused the closure of as many as 20 “sportsbook” operations in this country, including the closure of the London-based BetOnSports operation, throwing 1,200 employees out of work. (Most still have not received their severance pay, according to the Ministry of Labor.) Some 180 operations are still hanging on, the paper said, employing some 9,000.
The U.S. law signed by President Bush last October prohibits U.S. credit card companies and banks from processing payments to offshore gambling firms. The Foreign Ministry notes that the 2004 WTO report calls the law in restraint of competition and specifically conflicts with the 1995 GATS agreement including specifically access to betting services.
Costa Rica has joined a number of countries from the European Union, India, Canada, Macau, Australia and the Caribbean in seeking compensation for damage to their economies caused by the law. Talks are underway between representatives of this country and the U.S., the Foreign Ministry spokesperson said.