Antigua & US Poker row

Two weeks after Black Friday and the online poker shutdown, Antigua calls US actions a “contravention of international law”

The storm surrounding the shutdown of three American online gaming sites gathers fresh momentum as Antigua enters the row with the accusation that the actions of the US Prosecutors in New York are illegal. So incensed are they by the actions of US prosecutors that they are considering further action with the World Trade Organisation.

On April 15th, henceforth known as Black Friday within the gaming industry, the U.S. Southern District of New York issued indictments against the owners of PokerStars, Full Tilt Poker and Absolute Poker for the serious charges of violating the Unlawful Internet Gambling Enforcement Act. The three domain names were seized, the websites shut down and the owners charged with $3 billion of fraud and money laundering.

The websites of PokerStars and Full Tilt were opened again to allow players to withdraw their deposits and to allow non US players to continue enjoying online gaming. The condition of the lifting of the ban was that both companies have agreed to prohibit American players from using their facilities.
Here lies the crux of Antigua’s argument. As Absolute Poker is registered in Antigua and Barbuda, the Island maintains that betting operators have every right to offer their services to American customers. Therefore, according to Antigua's finance minister, Harold Lovell, America’s actions are “a clear contravention of international law.”

The World Trade Organisation would certainly agree, having already ruled back in 2005 that the US violated international agreements on trade in services by prosecuting the operators of offshore Internet gambling sites, rejecting pleas of protecting public morality as a means of defense from the States.

The Island of Antigua takes the matter extremely seriously, which is hardly surprising considering that online gambling is the second largest employer after tourism. The World Trade Organisation estimates that the Island loses $21 million a year due to the American ban, whilst officials from Antigua out the figure at $3.4 billion. Whatever the true figure, it is enough for Antigua to continue its battle against what they call the illegal and protectionist actions of the United States, and will meet next week to discuss whether to petition the World Trade Organisation and seek sanctions against them.

However, the U.S. prosecutors said they shut down the sites because the owners laundered money and conducted fraudulent transactions.