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USA and Costa Rica Reach Online Gambling Settlement - 03-18-08

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March 18 - The United States has reached an agreement with yet another country that made claims for compensation over the US's refusal to allow foreign operators to compete in its local gambling industry.

The Costa Rican Tico Times reported that an agreement has been reached between the two countries and was acceptable to both sides. Costa Rica's Foreign Trade Minister, Mr. Marco Ruiz, said in a written statement: "The agreement has been satisfactory to the country".

The agreement, similar to those reached with other countries and regions such as Canada, Japan and the European Union, offers Costa Rica greater access to previously off-limit service markets, including storage, research and development. This agreement comes as compensation for excluding Costa Rica online gambling operators from competing in the US betting industry, a violation of the World Trade Organization regional treaty signed in previous years.

The Costa Rica online gambling industry was hard hit after the United States' decision to alter its agreement with the WTO, instead of changing its controversial gambling legislation such as the Unlawful Internet Gambling Enforcement Act. However, by doing so, the United States opened itself up to compensation claims from practically every region around the globe. To date, the country has reached settlement agreements with a large number of these countries and jurisdictions but refuses to budge when it comes to changing local gambling laws.

The United States has long cited the social ills brought about by gambling as the main reason for coming down so hard on the industry. However, authorities turn a blind eye to local operators who run online horse racing and lottery services, yet still continue to prosecute foreign operators such as those from the Costa Rica online gambling industry.

Experts predict that the United States will eventually need to change its laws because of mounting internal and international pressure.



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8/29/2008 9:05:29 AM
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