Measures Affecting the Cross-Border Supply of Gambling and Betting Services. Noor Saymeh Dulani Seneviratne Christopher Sheng. Background. More than 1800 different online casinos are on the internet: Some examples of online games: Roulette, Craps, Blackjack, Sports bedding
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Examples: Cryptologic, Microgaming, Boss Media, Playtech and Odds
A) 24 hours open
B) Free software, nothing too complex
C) Higher payout percentage and bonuses for newcomers
A) Web-based casinos: can play casino games w/o downloading software to the local computer,
B) Download-based: Requires download of the software, in order to play and wager on the casino games offered and
C) live-based: See, hear and interact with live dealers at the tables in casino studios worldwide
***Sports betting= 35% of the revenues
***The Caribbean country of Antigua and Barbuda claim that offshore online casinos are a lucrative source of revenue and provide an income for hundreds of islanders. Basically…U.S. prohibitions were hurting the island’s efforts to diversify its economy away from tourism.
1) The Interstate Wire Act of 1961: is a United States federal law prohibiting the operation of certain types of betting businesses in the United States.
2) Travel Act: makes it a federal crime to travel among the states or internationally or to use the U.S. mail or other means of interstate commerce to “promote, manage, establish, carry on, or facilitate …unlawful activity…”
3) The Illegal Gambling Business Act: statute was aimed at syndicated gambling.
***Controversial Argument: Antigua Argues: U.S. a WTO member, has put restrictions on Internet gambling in which violated trade commitments BUT U.S. argues: In Uruguay Rd. the U.S. clearly intended to exclude gambling.
-From 1999-2004, the U.S. has been market leader in the Global internet gambling industry
-Lacking behind is Latin America
-Brings in Tax Revenues
- Encourages citizens to bring businesses to their own country
Article 21.3 (c) Arbitration Report
Request for Consultation
Appellate Body Report
March 13, 2003
November 10, 2004
April 7, 2005
August 19, 2005
(1) any business enterprise involving gambling, liquor on which the Federal excise tax has not been paid, narcotics or controlled substances (as defined in section 102(6) of the Controlled Substances Act), or prostitution offenses in violation of the laws of the State in which they are committed or the United States,
(1) Is a violation of the law of the state in which it is conducted; and
(2) Involves five or more persons who conduct, finance, manage, supervise, direct or own all or part of such business; and
(3) Has been or remains in substantially continuous operation for a period in excess of thirty days, or has a gross revenue of $2,000 in any single day.
* Definition taken from www.lectlaw.com
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