LONDON, November 12, 2010 /PRNewswire/ -- Bodog Europe affirmed today its support of Hon. Harold Lovell, Antigua and Barbuda's Minister of Finance, the Economy and Public Administration in the ongoing dialogue with the US Trade Representative regarding the WTO ruling that the US is violating international treaty obligations by barring Antiguan remote gaming operators from accepting US customers.
The so-called "David and Goliath" dispute began in 2003 with a petition by the nation of Antigua and Barbuda ("Antigua") to the World Trade Organization ("WTO"). Antigua argued that the US was in violation of its treaty commitments under the General Agreement on Trade and Services ("GATS") because it permitted US domestic companies to offer remote gaming services while simultaneously imposing discriminatory trade barriers (by way of federal legislation) that precluded other WTO members from accessing the US market for such services.
The World Trade Organization is a global body empowered by its 153 member countries - including the United States, one of the WTO's founding members - to, among other things, oversee compliance with international trade agreements such as the GATS.
Following a series of decisions by the WTO and subsequent appeal by the US, the final WTO ruling was released December of 2007: the United States did indeed include remote gambling services in its GATS treaty commitments, and it was in violation of this treaty by allowing remote gambling on horseracing domestically while barring other WTO member countries from offering such services to the US market.
The WTO ruled that this ongoing treaty violation resulted in damages to Antigua equal to twenty-one million US Dollars ($21,000,000) annually.
Antigua had no trade leverage, and as Antigua's economy was less diverse and was dwarfed by that of the US, Antigua was not in a position to offset these damages through other trade concessions, which would be the typical recourse in such cases. As a result, in an unusual move, the WTO granted Antigua the right to "counter-measures" - Antigua would be entitled to suspend certain intellectual property rights that the US would otherwise have under another treaty up to twenty-one million dollars worth of value per year.
In essence, since the WTO could not actually compel the US to pay restitution, because the US remained in violation of its treaty commitments under GATS, Antigua would be entitled to suspend US entitlements under another, intellectual property-related treaty up to this amount as compensation.
To date, Antigua has not yet sought to impose these countermeasures, electing instead, for the time being, to negotiate with the US Trade Representative in hopes of a constructive resolution.
"Minister Lovell has recently returned from a trip to Washington, where we are advised he conferred with the US Trade Representative in hopes of progressing an amicable resolution prior to imposition of the countermeasures," said Patrik Selin, CEO of Bodog Europe.
Earlier this week, Minister Lovell convened a meeting with the Director of Gaming and licensed remote gaming operators in Antigua to provide an update as to the status of the negotiations and to solicit feedback from stakeholders.
"The meeting was very constructive," said Selin. "Though Bodog Europe has no US-facing business, we remain committed to the economic interests of Antigua and Barbuda and the ongoing strength of the Financial Services Regulatory Commission. We were grateful to have the opportunity to discuss these matters directly with the Minister."
Later in the week, rumors surfaced that Minister Lovell had advised the licensed operators that Antigua had accepted an offer by the US to settle the WTO dispute for ten million US dollars.
"That's absolutely false," says Selin.
"At no point in the meeting was anything of the kind said. We were advised that the Minister's dialogue with the US was ongoing and the licensees' opinions and feedback were being actively sought to ensure that all stakeholder perspectives were heard. It is our understanding that unless and until the settlement discussions prove fruitless and the countermeasures are implemented, negotiations remain ongoing. "
About Bodog Europe
Bodog Europe (http://www.bodog.co.uk and http://www.bodog.ca) is the exclusive licensee of the "Bodog" brand for online gaming services within Europe and Canada, offering world-class sports betting, a thriving and dynamic poker community, and a full Las Vegas-style casino with more than 80 web-based and downloadable games. Bodog Europe does not offer gaming services within the United States of America and is regulated and overseen by the Antigua and Barbuda Financial Services Regulatory Commission, Division of Gaming, which was designated and recognized by the UK's Department of Culture, Media and Sport as a trusted, highly-regulated, "white listed" jurisdiction effective Nov. 3, 2008. For more information, visit http://www.bodog.co.uk or http://www.bodog.ca.
The Bodog Brand The Bodog licensing enterprise (http://www.bodogbrand.com) is a branded venture capital and licensing organization with its head office in the Caribbean nation of Antigua. BodogBrand.com holds the global rights to license the Bodog brand across all sectors, and its mandate is to partner with and/or license the brand to carefully-selected licensees to accelerate partner growth while simultaneously extending the Bodog brand into new and adjacent markets. BodogBrand.com currently licenses the Bodog brand to a variety of brand licensees for an array of products and services worldwide, including online gaming, music, and other entertainment properties. For more information, visit http://www.bodogbrand.com.
SOURCE Bodog Europe
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