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Fire At Monte Carlo In Las Vegas
On Thursday January 25th a fire broke out at the Monte Carlo Hotel and Casino in Las Vegas. The fire forced the evacuation of its 3,002 rooms and casino. More...

Disappointing WTO Decision In Antigua Vs. US Online Gaming Case
The World Trade Organization Issues a DecisionOn December 21 a World Trade Organization (WTO) arbitrary panel ruled that Antigua is entitled to $21 million a year from the United States, a far cry from the $3.4 billion that Antigua sought in its claim against the US regarding online gaming.The WTO’s ruling took into account only money Antigua lost through online horse-racing wagers, instead of all online gaming. The panel chose not to account for all online wagering that takes place in the US. Instead, it only awarded Antigua compensation from online wagers that are taxed and regulated.While that's the underlying logic to the WTO's decision, it seems the WTO simply decided to throw Antigua a bone, and a small one at that, while allowing the US to pursue their course of unfair trade practices at a bargain price. Call it a tax on ufair trade practices, or the small cost of moralistic legislation that will cause the US to stay out of step with most of the rest of the world, while prohibiting citizens like you and me to play poker with our own money from the privacy of our own homes. There's a larger cost too, the loss of billions in tax revenue and job creation that would accrue to the US if they were to regulate and tax online gaming.Some Background on this CaseAntigua’s claim against the US is predicated on the US allowing certain forms of online wagering, such as horse race wagers, but prevents access to other forms of online gambling and therefore violates those sections of the General Agreement for Trades and Services (GATS) that cover online gambling.Who’s Still Chasing Down the US; Who Settled Their ClaimsThe European Union, Japan, Canada, India, Costa Rica, and Macao joined Antigua in seeking sanctions against the US. The US settled with the EU, Japan, and Canada, but negotiations with India, Costa Rica, and Macao continue. Letting the Fish Off the HookWhile online gaming companies urged their host countries to stand tough against the US in order to force them to reviser online gambling laws, the EU settled for smallish concessions. This let the US off the hook for much less than the amount that would be lost to the gaming industry itself as well as lost taxes to their host countries that are excluded from the US online gaming market—the largest in the world.This Decision Can’t Be AppealedThe decision issued by the WTO arbitrary panel cannot be appealed, although the WTO must first approve the arbitrator's decision before Antigua can act, and that approval will not come until January.WORLDWIDE REACTION TO THE WORLD TRADE ORGANIZATION'S DECISIONBecause there are so man y parties involved in this case, there are reactions from many quarters, and the issues involved in this case still comprise a very unsettled situation.The Remote Gambling AssociationOnline gaming in the US is anything but neatly tied up and put aside in a box. The Remote Gambling Association, a trade association representing European internet gambling companies, plans to file a complaint against the United States for violating WTO rules by targeting foreign gaming companies while not prosecuting US online gaming operators.The RGA said the WTO decision fails to address “…discriminatory and protectionist US practices against European and other foreign online operators in the form of selective prosecution related to trade in gambling services.�The RGA’s Clive Hawkswood said: “How would US investors and businessmen feel if they invested in a business in the UK based on international law commitments, and then suddenly the UK not only passed new laws forcing them to shut down their business, but then tried to throw them in jail for past activities while still allowing their domestic competitors to continue on doing the same thing? That’s what is happening to our industry in the US.�Safe and Secure internet Gambling InitiativeJeffrey Sandman, spokesperson for The Safe and Secure internet Gambling Initiative, said the RGA’s action should encourage lawmakers to regulate internet gambling through Representative Barney Frank’s proposed internet Gambling Regulation and Enforcement Act.According to Sandman, “It is time for the US to end its hypocritical practices that discriminate against foreign online gambling operators, while allowing US gambling operators to accept bets for certain forms of gambling. Regulation of internet gambling should be supported as a means to resolve this trade dispute.�Trade Law Expert, Professor Joseph WeilerJoseph Weiler, a professor of law at New York University, commented, “What is particularly troubling is that these prosecutions for past activity are still continuing. To compound it by selecting only non-US targets is even more troubling. To clarify the situation for the future for all is one thing, but that does not seem to be the case here.�Anti-Gambling Advocate, Representative Bob Goodlatte"Considering that Antigua and Barbuda were asking for over $3 billion in compensation, and they were only awarded a token $21 million, this decision is a partial victory for the U.S.," said Rep. Bob Goodlatte, (R-VA), a staunch opponent of all online gaming—except, of course, for online horse race wagering. The inconsistency there stems from the fact that the horse race industry is a major contributor to Goodlatte’s campaigns. For the full story on how Rep Goodlatte’s philosophical inconsistencies, see my blog entry dated December 3, 2007.Financial Services RoundtableThe Financial Services Round Table warned that regulations being drafted to enforce the Unlawful internet Gambling Enforcement Act (UIGEA) will present major compliance obstacles unless the Bush administration clarifies its conflicting views on online betting.Bank of AmericaThe Bank of America said that the Government should provide a list of specific entities that banks are forbidden to take payments from. “Without a definition of what is legal,� the Bank of America stated that “financial institutions will be forced to block legitimate transactions in order to avoid the possibility of permitting an illegal transaction.�Antigua’s ReactionAntigua's finance minister Errol Cort described the WTO's decision as a setback for the small Caribbean nation. Antigua had sought to apply $3.4 billion in trade sanctions against the US to compensate the nation for lost revenue due to unfair trade practices, but were instead awarded $21 million by the WTO.Still, Cort is hopeful, saying “We think that this decision, as terribly flawed as it may be, should still have the desired result of getting the US to sit down with us and seek an amicable resolution. We look forward to meeting with the U.S. delegation in the very near future.�Read the Full WTO DecisionThe full text of the WTO decision can be accessed here:PDF version of WTO decision: http://www.wto.org/english/tratop_e/dispu_e/285arb_e.pdf

Absolute Poker Investigation Report Is Released
Earlier today the Kahnawake Gaming Commission (KGC) released the results of their investigation into Absolute Poker.* As a result of AP’s breach of KGC regulations, all aspects of Absolute Poker’s operations will be subject to random audits conducted by the Commission or its agents over the next two years. If AP is found to have breached and provisions of Kahnawake gaming law, Absolute Poker’s Client Provider Authorization—it’s license to operate—may be suspended or revoked.* Absolute Poker is required to implement a continuous compliance program, along with other remedial measures directed by KGC.* Those persons responsible for the activities will be permanently removed from playing any role in AP’s operations. * AP is fined $500,000, to be paid in full within 60 days.* AP must post a security deposit that will be held by KGC for two years and used to offset costs associated with any future breaches of Kahnawake gaming law, including any work performed as a result of the audit and the decision.* AP will pay all costs associated with KGC’s investigation.KGC, on October 17, 2007, directed Gaming Associates to “… carry out the necessary inquiries, audits and reviews of AP’s systems and personnel.� Based on the audit conducted by Gaming Associates, the Kahnawake Gaming Commission made the following findings of fact:* Beginning on August 14 for a period of six weeks, the accounts listed below were used to compromise AP’s systems by using software that enabled users to view hole cards of other players, resulting in unfair play. The players in question are:GRAYCATPAYUPSTEAMROLLERPOTRIPPERXXCASHMONEYXX, also known as SUPERCARDSMSSDOUBLEDRAGRONFALDOXXB also known as ROMNALDO * After these activities took place, persons associated with AP’s operations deleted certain gaming program logs and records that hampered the Commission’s investigation.* AP failed to contact the Commission within 24 hours after they became aware these activities occurred.* Shortly after these activities became known, AP “…made expeditious efforts to appropriately reimburse all players who had participated in games in which the impugned activities occurred, with interest.�* AP has taken action to address the vulnerability in its systems that allowed these activities to take place and to prevent their systems from being compromised again. their systems from being compromised again.Here’s the entire report: http://www.kahnawake.com/gamingcommission/KGC-AP-0111.pdf

European Union To US: Open Your Online Gaming Market
As the trade dispute between Europe and the US over Internet gaming industry continues, the British Government said it favors regulation instead of prohibition. European Union Trade Commission Peter Mandelson (pictured right) said recently that Congress should either open its market to overseas operators or compensate Europe for blocking the American gambling market to European operators. Trade experts acknowledge that legislation introduced by Representative Barney Frank (D-MA), the Internet Gambling Regulation Enforcement Act, could resolve the potential $100 billion gambling dispute and bring the US into compliance with international trade agreements.The trade dispute stems from Antigua’s World Trade Organization (WTO) victory over the US earlier this year. After the WTO ruled that the US had violated trade rules in barring Antiguan online gaming operators from the US market, the US withdrew its WTO obligations with regard to free trade in the gaming area.The US withdrawal allows Europe and other countries to demand trade concessions up to the size of the entire sector on an annual basis, which amount to the astronomical of $100 billion. If the parties cannot settle the matter themselves, binding arbitration before a WTO panel could be the result. Antigua is separately involved in arbitration with the US to determine the size of the compensation due it. Other countries seeking compensation include India, Costa Rica, and Canada. “Rather than negotiating away settlements that could negatively impact the US economy, the Administration and US Congress should seek a more sensible policy solution and regulate Internet gambling,� said Jeffrey Sandman, spokesperson for the Safe and Secure Internet Gambling Initiative. “As the British Government has correctly acknowledged, it is clear that the futile approach by the US to prohibit Internet gambling is a failure. Regulation of Internet gambling could bring the US into compliance with WTO requirements, protect consumers and generate billions in revenue needed for critical government programs.� The Safe and Secure Internet Gambling Initiative promotes the freedom of individuals to gamble online with the proper safeguards to protect consumers and ensure the integrity of financial transactions. Their web site, at www.safeandsecureig.org, provides a means for individuals to register support for regulated Internet gambling with their elected representatives.