WTO Gives Antigua Only $21 Million In Sanctions; US Says 'Not So Fast...'

from the this-ain't-over-yet dept

The battle between the US and Antigua over online gambling is rather long. You can go back here to read a summary of the back and forth -- but the quick version is that the US violated its own free trade agreements by banning some forms of online gambling (while allowing others). Antigua, home to many online gambling firms, filed a complaint with the WTO. The WTO repeatedly sided with Antigua, and the US repeatedly ignored those rulings, before the US eventually unilaterally claimed that it had changed its trade agreement so that online gambling wasn't covered. In response, Antigua (with very little power) started pushing for a different kind of sanction against the US: it asked to be allowed to violate intellectual property of US firms, including copyrights, patents and trademarks. Antigua didn't really want that to happen -- it wanted to use that to put pressure on the US to back down and allow online gambling. A bunch of other countries started siding with Antigua until the US bought them off, leaving Antigua and a few other small countries fighting the US at the WTO.

Today the WTO came down with its final (no, this time they swear, it's final, dammit!) ruling, saying (again) that the US definitely did violate trade agreements, but that Antigua is only entitled to $21 million. The WTO did allow Antigua to target US copyrights in order to make up that amount, but the way folks like the RIAA "count" the value of copyright, $21 million is, what, like 10 songs? This is obviously far short of what Antigua was hoping for. You would think that the US might just pay off the $21 million and be done with it... but that would only be if you didn't recognize the way our government worked. Instead, even though there's no appealing the WTO's decision, the US is already warning Antigua not to put in place any sanctions based on this ruling. The US claims that it's in the process of "revising its commitments" with regards to its trade agreements and that Antigua should wait until those revisions are complete before it thinks about putting in place sanctions. While Antigua "wins" again, the reality here is that the US appears to have bullied its way into the real winning position.

Filed Under: antigua, gambling, trade agreements, us, wto

Why Should Google, Microsoft & Yahoo Have To Pay Fines For Casino Advertising?

from the makes-no-sense dept

The pointless US campaign against online gambling has snared another bunch of innocent victims. A few years back, the DOJ started a new program: rather than trying to stop online gambling directly (since all were operating outside of the US), it would simply go after websites that ran ads from casinos. The problem is that this would appear to be a free speech violation. Unfortunately, that hasn't stopped the folks in the Justice Department from applying pressure to companies -- and it looks like the three big search engines have caved. Google, Yahoo and Microsoft have agreed to pay a combined $31.5 million for running ads from gambling sites in the past (the fines are to be paid as a mixture of cash, donations to charity and public service announcements). The companies aren't admitting guilt -- which seems reasonable because they're not guilty of anything. None of these companies was involved in illegal online gambling. None of these companies even embraced or endorsed illegal online gambling. As platform providers for ads, they simply allowed others to buy ads on their sites for online gambling sites. There shouldn't be any liability directly on those search engines -- but it's tough to fight the US gov't, and since the amounts are relatively small, it's not a huge surprise that the companies settled. It is unfortunate, though. No matter whether you are for or against online gambling, there's simply no reason to go after the search engines. If the ads themselves were illegal, go after those who bought the ads.

Filed Under: ads, doj, gambling, liability, search engines
Companies: google, microsoft, yahoo

New Massachusetts Law Would Open New Casinos While Throwing Online Gamblers In Jail

from the place-yer-bets dept

Sometimes it's impossible not to be cynical about the political process and what's really going on behind the scenes. Sure, people will often ascribe the worst motives to various politicians when other reasons may be more accurate, but it's difficult to see how Massachusett's governor Deval Patrick can put forth this new bill on gambling with a straight face. It pushes for the opening of three new casinos in the state, while simultaneously banning online gambling (which the federal government is already working on). Federal attempts at banning online gambling, however, have focused on stopping credit card processing and stopping the casinos themselves. Patrick's bill actually goes against the gamblers -- threatening them with up to two years in jail and $25,000 in fines. It's difficult to see how this bill can be seen as anything but a plan to try to squeeze more money out of the new casinos by making licenses a lot more valuable by totally banning the competition.

Filed Under: casinos, gambling, massachusetts, online casinos

Antigua Seriously Pushing For WTO Approval To Distribute Free Music And Movies

from the well,-look-at-that... dept

Since 2003, we've been following the saga of Antigua's fight against the US in the World Trade Organization. Basically, Antigua argued that the US's ban on online gambling violated the free trade agreement the two countries had signed -- as it blocked online gambling sites based in Antigua (of which there are a bunch). Since then, the case has been fun to watch if only for how the US has responded to it. The WTO ruled in favor of Antigua at which point the US basically ignored the WTO, despite the WTO occasionally making angry noises. Then, there was the time that the US went so far as to declare that the WTO had reversed that original ruling on appeal... but the details showed that the US was making up that claim and the WTO was still supporting Antigua. Earlier this year, after the WTO started stomping its feet again, the US responded by saying it was simply (unilaterally) going to change its free trade agreement with Antigua, so that online gambling wasn't included. Obviously, Antigua finds that solution quite troublesome.

Back in early 2006, however, a few people began buzzing about an idea that Antigua could use to force the US to pay attention: become an WTO-backed ignorer of US copyright law. Since the US knew it could effectively ignore Antigua over online gambling, the idea was that Antigua should simply say that if the US won't support its free trade agreement, then it would start ignoring US copyright laws, and would then (with WTO-backing, mind you) allow modern versions of all sorts of copyright-violating services to prosper. We didn't think that Antigua would seriously go in this direction, but as a new NY Times article makes clear it's exactly what Antigua is now pushing for. Of course, the real hope is that in doing so, the Big Copyright players will force the US government to back down on the gambling issue. However, it might be a lot more interesting to see what would happen if Antigua really did become the protected legal home of more modern versions of (the old) Napster, my.mp3.com, the Pirate Bay, Allofmp3.com and others. Of course, as reader OKVol points out to us, the real irony here is that in potentially ignoring copyright monopolies, Antigua may be getting closer to real free trade than in living up to the terms of the free trade agreement between the two countries.

Filed Under: antigua, copyrights, free trade, gambling, online gambling, world trade
Companies: wto

Yet Another Startup Seeks To Develop A Legal Form Of Online Gambling

from the taking-a-chance dept

Despite the war on online gambling in the US, a few brave companies continue to search for loopholes allowing them to operate. The most recent one to get our attention was Betcha.com, which offered a platform for peer-to-peer wagers. The only catch was that the losing party wasn't technically compelled to pay the winner, a caveat that the company felt would allow it to operate legally. Authorities disagreed, however, and the site was promptly shuttered. TechCrunch points to a new mobile-oriented site dubbed Swamble that hopes to make a market in non-financial wagers. So, for example, instead of betting $20 on the outcome of a football game, the two parties could wager something else, like a free week of yard work for the winning party. While the authorities may not have much of a problem with these arrangements (though who knows?), it's hard to see the company faring very well. Non-financial wagers are going to have a very narrow appeal. For people who do like the arrangement, there's very little need for an actual service to facilitate such bets. The company says that in the future it will add a private financial wagering system, away from the peering eyes of the law, but if a thriving betting platform does take off, it's hard to imagine the government not getting involved in some way.

Filed Under: gambling
Companies: betcha.com, swamble

Why A Crackdown On Gambling Isn't The Answer To The NBA's Corruption Woes

from the if-gambling-is-outlawed-only-outlaws-will-gamble dept

In recent days, the NBA has been rocked by allegations that one of its referees was gambling on games that he was officiating. The claims have yet to be proven, but the official has already resigned from the league. NBA commissioner David Stern has called this an isolated incident, but at the same time is calling for a greater crackdown on illegal sports betting. The league could employ advanced statistical monitoring techniques to determine whether its referees have suspicious foul-calling patterns, although it would be difficult to prove anything definitive. In a New York Times op-ed, economist Justin Wolfers makes the contrarian argument that the solution is to lift anti-gambling laws that are in place throughout much of the country. Because sports betting is illegal in most areas, the industry is dominated by organized criminals, whose modus operandi is point shaving, the practice of paying players and refs to affect the final score of the game, but not actually the outcome, in order beat the Vegas spread. To those who participate in it, it feels like a harmless crime, since they're not actually throwing the game itself. Legalizing sports betting would help solve this problem as organized crime would have little to gain by operating in this business (customers would just go to legal, safer alternatives). Some entities may still opt to bet on games and then attempt to influence them, but as all betting would go through legitimate enterprises, suspicious activity is much more likely to get reported. Thus, while it sounds nice to "get tough" on gambling, it's the fact that we're already tough on it that's causing the problems.

Filed Under: gambling
Companies: nba

Second Life On Mission To Purge All The Fun

from the moving-on dept

Earlier this year, it was revealed that the FBI was watching the in-game Second Life casinos to see if they ran afoul of anti-gambling laws. In-game gambling is a tricky issue, since it brings up a litany of unresolved legal issues associated with virtual worlds. It looks like Second Life didn't want to take any chances, as it has summarily banned all gambling in the virtual world. Considering the harsh treatment of those affiliated with the industry, it's not surprising that Second Life would look to cover its hide. This news comes just days after Second Life announced that it would crack down on in-game sexual activity that it deemed to be "broadly offensive". In other words, so much for Second Life being a place to escape form the real world and virtually indulge all of your vices. All that's going to be left are half-baked corporate publicity stunts; too bad nobody goes there for that.

Filed Under: gambling, virtual worlds
Companies: second life

Yes, But Can The Computer Keep A Poker Face?

from the deep-stack dept

Computers have been beating humans at chess for a long time now, and just recently a group of scientists announced that they had developed an invincible checkers computer. But getting a computer to excel at poker has been something of a challenge. Whereas in chess and checkers, all of the necessary information is available to the computer for it to compute, in poker the players are dealing with imperfect information. Thus, good poker players often rely on feel and intuition, which are weak spots for machines. But computers are getting better, and starting today, a new poker-playing computer will square off against two poker pros in a contest to determine whether this bastion of human superiority is bound to fall. The program's developers have come up with a clever method to minimize the role of luck, as the computer will play two separate games simultaneously against the pros. The exact same cards will be dealt in each game, but in one game, the human will receive the cards that the computer got in the other game, and vice versa. In the end, the winner will be determined by combining the humans' chips and comparing them to what the computer has. Obviously, one contest won't be enough to give a definitive answer on this question, but if the computer does well, it will indicate that certain traits, like intuition, can actually be programmed to some extent.

Filed Under: gambling, games, poker

NETeller Buys An Expensive 'Get Out Of Jail Free' Card

from the justice-is-served dept

What does it take to avoid the wrath of the US government and its war on online gambling? In the case of NETeller, the online payment service that helped many US citizens fund online gambling accounts, it only needed to pony up $136 million, before being let on its way. By forfeiting that money and admitting guilt, NETeller can now resume business, provided it doesn't facilitate online gambling any more. Unfortunately, the company's founders weren't so lucky, as they'll be doing time for the crime of running the business. The settlement is also good news for customers in the US who have seen their money frozen on the site. With the settlement, NETeller is now clear to disburse the money back.

Filed Under: gambling
Companies: neteller