No Settlement Yet Between the US and Antigua and Barbuda

November 17, 2010 | News Category: Gaming Law

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Despite rumors to the contrary, it seems that no settlement has been reached between the United States, and the Caribbean island nation of Antigua and Barbuda.

Harold Lovell, the Finance Minister of Antigua and Barbuda has publicly denied that a multi-million dollar settlement has been agreed on with the US. The dispute between the two entities has been going on for some time, with no resolution at this time.

In 2007, the World Trade Organization's Dispute Settlement Body found in favor of Antigua and Barbuda when it came to the question of Internet gambling. In 2007, the United States banned online gambling, which means that they went against the 2005 World Trade Organization's ruling against any prohibitions on online gambling. The World Trade Organization awarded annual trade sanctions against the United States in favor of Antigua and Barbuda to the amount of US$21 million. The sum was intended as compensation for damages.

The United States and Antigua and Barbuda have attempted negotiations for some time now, however, because of a number of disagreements between the two parties, no settlement has been reached yet.

Gaston Browne, the Deputy Leader of the Antigua Labor Party announced on a radio show this week, that a settlement would be finalized soon, and that the two parties had already agreed that a one-off payment of US$10 million would be paid to the government of Antigua and Barbuda from the United States, and that they would outlaw gaming.

Browne even expressed his opinion regarding the way that this decision would have a negative effect on employment, including a number of employment cuts. In fact, Internet Service Providers, and other Internet companies would have serious repercussions because of the loss of jobs.

A number of parties were somewhat upset by the announcement, however, Lovell explained in his statement that no hasty moves had actually been taken.

Harold Lovell notes: "We have not accepted any offers that have been put on the table. Before we accept any offers that are placed on the table we would consult with the relevant parties here in Antigua and Barbuda."

Lovell explained that a decision of this type would not be made without the proper investigations being undertaken beforehand. "We'd want to see what impact any such agreement would have, not only with respect to the operators but also on the economy of Antigua and Barbuda."