LITIGATION ALLIANCE BETWEEN ONLINE GAMBLING COMPANIES AND ANTIGUA?

(611) (6-October-2006)

What's a top Sportingbet exec doing in Antigua?

The reported presence of top Sportingbet executive Nigel Payne in Antigua this week seemed to add credence to a Guardian newspaper story that British-based online gambling companies could join forces with the Antiguan government to challenge the new US legislation.

Sportingbet suffered heavy losses when the US legislation targeting internet gambling funding wiped an estimated GBP4 billion from the sector's stockmarket value on Monday.

Antigua, which has already successfully challenged previous US laws on internet gambling, has said that it would be willing to work with UK companies such as Sportingbet to challenge what they see as US protectionism.

Following a complaint from Antigua, the World Trade Organisation ruled last year that US laws on online gambling contravened its rules. A WTO panel will decide later this year whether the US is now complying with its rules.

Antiguan officials told the Guardian that the new legislation, due to be signed into law by President Bush soon, was "...as contrary to the decision of the WTO in our case as can possibly be imagined" and "....puts the United States on a direct collision course with the WTO".

"The new legislation just makes our case before the WTO that much stronger," said Mark Mendel , a lawyer who represents Antigua in the WTO.

Complaints to the WTO from European companies are brought by the European Commission, which said yesterday it had not yet received any approach from any UK company on the issue. However, several UK companies, including Sportingbet, have indicated they are actively considering a WTO case against the US.