No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeArchiveC.R. Raises the Stakes In Tiff With the U.S.

C.R. Raises the Stakes In Tiff With the U.S.

Costa Rica is taking the United States to arbitration over its withdrawal from the part of its World Trade Organization obligations that deals with online gambling.

At issue is a U.S. law that severely restricts online gambling that passed in October of 2006 and made it a crime for banks and credit card companies to process transactions on behalf of Internet gambling companies.
The law effectively withdrew market access the United States had committed to under its WTO obligations. Following that, the United States pulled out of its WTO commitments to online gambling altogether after losing an arbitration with Antigua.

Costa Rica is therefore seeking compensation for its lost market opportunities, as the U.S. actions have caused a loss of jobs and trade.

“The United States withdrew from its list of WTO service sector commitments regarding online gambling,” said Foreign Trade Minister Marco Vinicio Ruiz in an emailed statement. “As an affected party, Costa Rica has begun a process to discuss compensation for this damage to its rights in other service sectors.”
Thousands of Ticos have lost their jobs since the closing of some sportsbook call centers in response to the new U.S. law. By far the most dramatic was BetOnSports, which let 1,200 employees go and closed up its offices in the San Pedro Mall after its owner was arrested in the Dominican Republic (TT, Aug. 18, 2006).
Eduardo Agami, the president of the Costa Rican Association of Call Centers and Electronic Data, estimates that there are fewer than 200 online gambling companies with call centers in Costa Rica, as some of them have closed in the last few years.
The filing for arbitration is just the latest chapter in the international dispute over the U.S. crackdown on online gambling. Though the U.S. was able to settle with the European Union, Japan, Canada and Australia by allowing them access to different service sectors, Costa Rica, India, Macao and Antigua never reached an agreement.
Antigua had filed a complaint with the WTO, which found in Antigua’s favor. In response, the U.S. withdrew from its WTO obligations related to gambling.
A release from Safe and Secure Internet Gambling Initiative, a lobbying group, said this is the first time a country has withdrawn from WTO obligations in response to a WTO decision.

Costa Rica filed the arbitration request on Jan. 28, at the same time as, but separately from, Antigua’s second request for arbitration.

 

Trending Now

Latin American Clay-Court Hopes Take Center Stage at Italian Open in Rome

The Italian Open is underway at the Foro Italico, and for tennis fans across Latin America, this year’s tournament offers more than the usual...

Global Leaders Arrive in Costa Rica for Presidential Transition

Costa Rica will host delegations from around the world Friday as Laura Fernández is sworn in as the country’s next president, turning the May...

Costa Rica Drivers Face Delays Near Tarcoles Bridge

Drivers heading between Costa Rica’s Central Valley and the Central Pacific should prepare for delays this week as the Tárcoles bridge on Route 34...

Trump Says He Would Not Pay $1,000 for U.S. World Cup Opener

President Donald Trump said in an interview published Thursday that he would not pay the $1,000-plus ticket price for the United States' first World...

Costa Rica Loses 56,000 Jobs as Workforce Participation Hits Multi-Year Low

Costa Rica shed more than 56,000 jobs in the first quarter of 2026 compared with the same period last year, while an additional 118,000...

Costa Rica Central Bank Warns Dollar Decline Could Reverse

The president of the Central Bank of Costa Rica, Róger Madrigal, warned that the recent weakness of the U.S. dollar against the colón could...
Avatar
Loading…

Latest News from Costa Rica

Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Travel