I suspect there is not a direct correlation between Antigua & Barbuda's historic experience and The Bahamas possible future experience. Antigua's WTO case was commenced at a time when US online gambling was principally lotteries (gaming) and horse race betting (wagering).
The US DoJ had a long standing opinion that all cross border online gambling was illegal. I understand the UIGEA targeted financial institutions, not gambling businesses and it is unclear that regulations adequately define what an unlawful interactive gambling activity is. Financial institutions have simply been persuaded that it's all a bit too hard for the time being.
Since the WTO decision in Antigua's favour and the UIGEA, the US DoJ has issued an amended opinion that the Wire Act only relates to wagering (whereas it had previously stated a view that it related to all gambling). Probably as a result of that opinion by th DoJ several US States have aggressively introduced online gaming laws (laws of course further enable online gaming) - New Jersey being the closest and most obvious example.
So in summary the USA has signed a GATS treaty allowing online gambling services and its states have moved to further enable online gambling to its citizens. Until such time as regulations pursuant to the UIGEA make legalised online gaming based offshore (say The Bahamas) as unlawful then it is just fear of the unknown for financial institutions. However, as these financial institutions start to recognise online gambling as lawful, on the back of US state based online gambling, then there's renewed opportunities for offshore jurisdictions with properly licensed and regulated sectors.
My point being that it is perhaps not a fair one-to-one comparison.
alanp says...
I suspect there is not a direct correlation between Antigua & Barbuda's historic experience and The Bahamas possible future experience. Antigua's WTO case was commenced at a time when US online gambling was principally lotteries (gaming) and horse race betting (wagering).
The US DoJ had a long standing opinion that all cross border online gambling was illegal. I understand the UIGEA targeted financial institutions, not gambling businesses and it is unclear that regulations adequately define what an unlawful interactive gambling activity is. Financial institutions have simply been persuaded that it's all a bit too hard for the time being.
Since the WTO decision in Antigua's favour and the UIGEA, the US DoJ has issued an amended opinion that the Wire Act only relates to wagering (whereas it had previously stated a view that it related to all gambling). Probably as a result of that opinion by th DoJ several US States have aggressively introduced online gaming laws (laws of course further enable online gaming) - New Jersey being the closest and most obvious example.
So in summary the USA has signed a GATS treaty allowing online gambling services and its states have moved to further enable online gambling to its citizens. Until such time as regulations pursuant to the UIGEA make legalised online gaming based offshore (say The Bahamas) as unlawful then it is just fear of the unknown for financial institutions. However, as these financial institutions start to recognise online gambling as lawful, on the back of US state based online gambling, then there's renewed opportunities for offshore jurisdictions with properly licensed and regulated sectors.
My point being that it is perhaps not a fair one-to-one comparison.
On US will not tolerate online gaming
Posted 14 March 2014, 7:33 a.m. Suggest removal