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New Online Indictments

Lawyer in WTO matter takes hope from US actions

Wednesday May 24 2006

by Patricia Campbell

The decision by the United States to indict an Antigua-based Internet gaming company may help Antigua & Barbuda in the next stage of its cross-border gaming dispute with the US.

That’s according to Antigua & Barbuda’s attorney in the World Trade Organisation case, Mark Mendel.

In an interview with the Antigua Sun, Mendel indicated that the action might be a blessing in disguise, since it serves as a clear example of how US laws discriminate against fair trade in the gaming sector. “The good thing about it is that, at this point in time, the US is just doing everything it can to make it easier for us to show the WTO that they are not even close to compliance,” he said, as he considered the impact of the indictments on the upcoming Article 21.5 hearing.

“We are about to start this process where the WTO is going to assess the extent of the US compliance with our decision and I think that these indictments will further enhance our position in front of that panel. It shows that the US, not only has done nothing to actually comply with the (Dispute Settlement Body’s) decision, but is doing these things that are expressly contrary to the decision. In that regard, I think it can be helpful,” Mendel told the SUN.

Last Wednesday the US Department of Justice (DOJ) issued a statement that money laundering charges have been laid against William Scott, Jessica Davis (aka Jessica Davis-Dyett), Soulbury Ltd. and World Wide Telesports (WWTS).

The 12 count indictment was actually filed last April, but remained sealed until last Monday. The DOJ alleges that between April 1998 and April 2005, when the indictment was filed, Scott and Davis operated WWTS and “illegally enticed gamblers to send funds from the United States to Antigua with the intent that these funds would be used for wagers on Internet casino games and sporting events.” The DOJ contends that this was in violation of federal law.

In an earlier interview, Director of Gaming Kay McDonald indicated that the WWTS issue is an example of the sort of restrictive practices on which Antigua & Barbuda has challenged the US at the WTO.

The reviewing panel for the Article 21.5 hearing is expected to be in place within a month, but the process is likely to be a lengthy one. The panel will review the existing legislation and rule on whether the US has, as it has claimed, complied with last year’s WTO ruling.

Mendel said although the US has used similar tactics of claiming compliance without having fulfilled all WTO requirements in the past, this is the first time it has claimed to be in compliance with a ruling without having made any legislative changes at all.
 
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