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TOW
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   Posted 8/29/2005 11:49 AM (GMT -5)    Quote This PostAlert An Admin About This Post.

 

Why WTO ruling is flawed

by Roberto Castiglioni - © 2005, The Offshore Wire

 

The World Trade Organization’s ruling in favor of tiny Antigua against the United States has become an evergreen topic of discussion.

 

Some may have thought that the discussion was over, considering that the United States was given an order to comply with the ruling by April 2025.  Contrary to generalized public acceptance of this ruling by the gaming industry, I believe the ruling is seriously flawed.

 

Many people may not have noticed that the sole beneficiary jurisdiction of this ruling is Antigua. All other gaming jurisdictions are left out of the benefits granted to the tiny Caribbean island.

 

This is a major flaw that sets a negative precedent. The WTO was to issue and enforce a ruling to the benefit of gaming jurisdictions in their entirety. With its ruling in favor of plaintiff Antigua only, the WTO becomes an accomplice of a jurisdiction that has no moral grounds to benefit and prosper.

 

Antigua’s Gaming Commission has failed thus far to amend its past wrong doings. The Authority played a proactive role in protecting Eddie Hadeed, owner of a failed sports book called Alladin Gold.

 

This was possible thanks to the Hadeed family ties with Antigua’s crooked Prime Minister Bird.  While it is generally believed that Antigua has changed since its last political elections, facts prove exactly the opposite.

 

The Hadeed family has maintained its leverage within the current government.  Senator Aziz Hadeed, Eddie’s uncle, is still a minister of the Antiguan government.

 

No wonder all external attempts to bring Eddie Hadeed to justice, and refund owed players, have been bouncing against the rubber wall that still protects this crook from within the current government.

 

With Antigua soon to be cashing in additional revenues, I firmly believe the entire gaming industry - starting with the sports books and casinos currently located in this jurisdiction - should take a firm position to support ongoing efforts to have the Alladin Gold disaster amended.

 

Antigua should not be allowed to benefit from this “financial blessing” unless it delegates a significant portion of its gaming revenues to pay owed players in full.

 

Honesty and ethics shall prevail over a flawed ruling that, if enforced without solving the Alladin case, will give a free pass to this tiny island and its crooked authorities.

 

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drunkguy
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   Posted 8/29/2005 12:45 PM (GMT -5)    Quote This PostAlert An Admin About This Post.
Somebody said...
Many people may not have noticed that the sole beneficiary jurisdiction of this ruling is Antigua. All other gaming jurisdictions are left out of the benefits granted to the tiny Caribbean island.


it would seem to me that each country would have to have an appeals process to WTO, after which sanctions could be brought against the offending country (US). If anything, Antigua ruling should make this process easier for countries to follow

don;t think this is a flaw, more like "the way things work"

does a normal WTO ruling apply universally to all countries? They aren't the world police. I would guess the way this happened is standard for WTO disputes.
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Dante
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   Posted 8/29/2005 1:03 PM (GMT -5)    Quote This PostAlert An Admin About This Post.
I just hope something actually GOOD comes of this....it seems like it will be an endless RED tape adventure jumpin
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RPM
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   Posted 8/29/2005 3:02 PM (GMT -5)    Quote This PostAlert An Admin About This Post.
Dante said...
I just hope something actually GOOD comes of this....it seems like it will be an endless RED tape adventure jumpin
you took the words right out of my mouth dante!~
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TOW
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   Posted 8/29/2005 5:47 PM (GMT -5)    Quote This PostAlert An Admin About This Post.
TOW press release featured on Forbes
 
 
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RPM
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   Posted 8/29/2005 5:52 PM (GMT -5)    Quote This PostAlert An Admin About This Post.
TOW IN THE SPOTLIGHT BABY!~
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Big Brother
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   Posted 8/29/2005 8:25 PM (GMT -5)    Quote This PostAlert An Admin About This Post.
doesn't this set a precedent that all judgements in the past can be apealed by other countries with gaming ties?
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RPM
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   Posted 8/29/2005 8:29 PM (GMT -5)    Quote This PostAlert An Admin About This Post.
i would think that would depend on whether or not the countries involved have free trade agreements with the u.s.

anyone know if costa rica does or not? i think they do....
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pier0
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   Posted 8/29/2005 9:52 PM (GMT -5)    Quote This PostAlert An Admin About This Post.

I don'y think this is the problem, as the US will make some small adjustments to the interstate horseracing act and will be fine with the WTO ruling.

They won't allow Antigua to access the US market...not this time and not with this ruling

Howewer Iit's about time the US Government realizes that internet betting is here to stay...

 

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RPM
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   Posted 8/29/2005 9:57 PM (GMT -5)    Quote This PostAlert An Admin About This Post.
pier,

its WAY past that time. i just cant figure out why they are against it. all the revenue they could get is just unreal, and they have to know they arent going to stop it...
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   Posted 8/29/2005 10:06 PM (GMT -5)    Quote This PostAlert An Admin About This Post.

I don't think American politicians are necessarily against gambling. Some of them are "enticed" to share that stance by the ones that have a real interest in keeping sports gambling in a gray area......Wayne Root exposed them in his June interview exclusive to TheOffshoreWire:

Wayne Root said...

Oh and one more mortality. Who benefits most from sports gambling remaining illegal? Is it the mafia, organized crime, La Costra Nostra? They make BILLIONS through illegal bookmaking. The only people being helped by crusading anti-gambling politicians are the Gambinos, Bonannos, and our good friend on HBO Tony Soprano.


 

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bigboydan
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   Posted 8/29/2005 10:26 PM (GMT -5)    Quote This PostAlert An Admin About This Post.
RPM said...
Dante said...
I just hope something actually GOOD comes of this....it seems like it will be an endless RED tape adventure jumpin
you took the words right out of my mouth dante!~
indeed yeah


a good capper is only as good as his info.

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Big Brother
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   Posted 8/29/2005 10:41 PM (GMT -5)    Quote This PostAlert An Admin About This Post.
i'm still curious if anyone thinks the ruling could set any kind of precedent for apeal on this?
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TOW
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   Posted 8/30/2005 8:23 AM (GMT -5)    Quote This PostAlert An Admin About This Post.
For sure BB, although this is the flaw IMHO. The WTO should have ruled on the overall issue, not on the specific claim.
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JC
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   Posted 8/30/2005 11:07 AM (GMT -5)    Quote This PostAlert An Admin About This Post.
That's not what the WTO does. Nobody else brought the claim. Somewhere in Antigua's early papers they clearly stated we bring this action on behalf of Antigua and Antigua only. I didn't see any other places lining up to help with the matter when it was in its early stages.

I have not read the latest CAFTA agreement that was recently enacted that applies to Costa Rica. I would bet that the US made sure the commitments DID NOT cover gambling services. And if that is so that would trump any chance CR had to bring an action under the GATS which was the basis for the Antigua case.

Antigua has had one book fail in its history. Las Vegas had one fail years ago. CR has had plenty, so has Curacao.
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   Posted 8/30/2005 11:16 AM (GMT -5)    Quote This PostAlert An Admin About This Post.

Jay,

I hate to disagree with you but I must in this case. This is what a WTO officer sent me awhile back:

Bernard Kuiten said...
Dear Mr. Castiglioni,
 
Thank your for sending me this information.  I am sure that you are aware of the fact that WTO Appeal proceedings are confidential and that hearings in appeals are not open to the public, or even to other WTO Members who are not participating in the dispute. In addition, the Appellate Body has no jurisdiction to rule on whether or not a Member complies with its domestic laws, nor does it have jurisdiction to award damages; it only has jurisdiction to rule on whether or not a WTO Members complies with the WTO agreements.
 
I'm afraid therefore that there is no role for the WTO Secretariat nor the Appellate Body in this regard.
 
Kind regards,
 
Bernard Kuiten
External Relations Division
World Trade Organization

The ruling applies to ALL jurisdictions members of the WTO, not Antigua only.

As far as Antigua having only one book fold goes....well....I have hard evidence to prove with any court you wish me to appeal to that the Gaming Commission covered up on behalf of Eddie Hadeed. This is direct involvement and implies direct responsibility and liability.

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JC
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   Posted 8/30/2005 11:25 AM (GMT -5)    Quote This PostAlert An Admin About This Post.
Where does it say that all of their decisions apply to all members?
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TOW
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   Posted 8/30/2005 11:35 AM (GMT -5)    Quote This PostAlert An Admin About This Post.
Bernard Kuiten said...
it only has jurisdiction to rule on whether or not a WTO Members complies with the WTO agreements.
 

The United States is a WTO member like Antigua, Costa Rica, Curacao (Netherland Antilles), Panama....
 
Once the ruling established that the United States was not in compliance with the agreement, the same treatment (benefits) shall apply to ALL other members. Confining its benefits to Antigua, that currently lacks the moral grounds to deserve it, is not only wrong, its also in violation of the WTO mission IMHO.
 
I will further inquire with the WTO and report their answer on this specific issue.
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JC
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   Posted 8/30/2005 11:41 AM (GMT -5)    Quote This PostAlert An Admin About This Post.
I just got off the phone with one of the WTO attorney's for Antigua. With all due respect, you are 100% wrong. It applies to Antigua only in this matter. Are other countries free to being a similar action and use the Antigua case as precedent? Yes. But the burden is on them to bring the cases.

Bernard Kuiten said...
it only has jurisdiction to rule on whether or not a WTO Members complies with the WTO agreements.

Right, Antigua brought a case and the WTO ruled that ths US was not in compliance with the GATS. It says nothing about automatically applying it to other members.

And like I said, I am pretty sure Costa Rica shot themselves in the foot with their latest CAFTA agreement.
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   Posted 8/30/2005 11:49 AM (GMT -5)    Quote This PostAlert An Admin About This Post.
Jay,

I have just emailed the WTO officer I am in touch with and will post his reply as soon as I receive it.

As far as Antigua goes rest assured I will do all in my power to have them take full responsibility for their past wrong doings in the Alladin Gold. This is a promise.
 
I obviously look forward to your support and cooperation in this.
 
BTW...good to have you here.
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Big Brother
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   Posted 8/31/2005 12:14 AM (GMT -5)    Quote This PostAlert An Admin About This Post.
damn, i asked for clarification and i just get more confused........
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   Posted 8/31/2005 8:27 AM (GMT -5)    Quote This PostAlert An Admin About This Post.
I disagree with Roberto that the WTO ruling is "flawed." It didn't have anything to do with the ethics of specific companies.  It also only applied to Antigua because as JC said it was Antigua that brought up the issue.

I support Roberto in his quest for justice from the Alladin's Gold failure. The ruling is a spotlight and Roberto is using it to try to expose the fraud that took place. Perhaps he could have worded it better but it was still an excellent tactic. He should be applauded for his effort.

Revere14
 
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