News that the United States has made a derisory offer of compensation to Antigua and Barbuda and the European Union, over losses from the closure of the online betting market, is hardly surprising given the US attitude to WTO rulings on the matter. According to the Financial Times, the US is proposing to open opportunities in the storage, warehousing and technical testing sectors – something unlikely to appease Antigua and Barbuda, which is claiming an annual loss of US$3.4 billion in potential gambling exports to the US.

European online betting companies are estimated to be losing US$4 billion a year. Both Antigua and Barbuda and the EU are said to be examining the offer and have confirmed that compensation talks will continue until 22 October. The US claims that the Caribbean nation has only lost around US$500,000 in annual revenue. Antigua and Barbuda could ignore US patents and property rights if an agreement over compensation is not reached.

In April this year Rep Barnett (Barney) Frank sponsored a bill to provide for the licensing of Internet gambling facilities by the Director of the Financial Crimes Enforcement Network. The bill has been referred to the Subcommittee on Commerce, Trade and Consumer Protection but there are strong groups opposing its passage, including US sports leagues. In the meantime, the US will need to rethink its compensation package if the World Trade Organisation dispute is to be settled. (E-09.25.07)

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