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release from Safe and Secure Internet Gambling Initiative, a lobbying group, said this is the first time a country has withdrawn from WTO obligations in response to a WTO decision.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

Costa Rica’s president says US ground operations would benefit national security

President Laura Fernández said US ground operations on Costa Rican soil would be good for national security if they pursued shared targets, while stressing...

Costa Rica Opens Legal Status Path for Thousands of Foreigners

Nearly 100 foreigners applied on the first day of a new Costa Rican immigration program designed to give legal status and work rights to...

Guanacaste Bakes While the Caribbean Floods in Costa Rica’s Split August

August gave us two very different versions of Costa Rica’s rainy season, with unusually little rain falling around Liberia while parts of the Caribbean...

Costa Rica Targets Wildlife Trafficking With New Tourist Campaign

Costa Rica has started a new campaign warning travelers not to remove wildlife, plants or other natural specimens after officials confiscated 4,366 animal and...

Argentina Takes Center Stage as Navone, Etcheverry Advance at US Open

Argentina is guaranteed a place in the fourth round of the US Open after Mariano Navone and Tomás Martín Etcheverry both advanced Wednesday, setting...

How El Nino is choking the Panama Canal

The Panama Canal will restrict the number of vessels transiting the crucial waterway from Friday for the second time ever due to drought caused...

US Calls on Allies to Cut Off Nicaragua After Ortega Bars Opposition Parties

The United States asked its international partners to immediately end normal dealings with Nicaragua's government, hours after the Ortega-Murillo administration formalized a constitutional rewrite...

Costa Rica Expects Major Cruise Tourism Jump in Puntarenas

Costa Rica expects around 150,000 cruise passengers to arrive in Puntarenas during the 2026–2027 season, a sharp increase that could bring more business to...

Costa Rica Expansion and Rebuild of the Limón Airport

Costa Rica plans to invest about $40 million to rebuild and expand Limón Airport, with the long-term goal of bringing international flights directly to...
Avatar
🌴 The Weekly Pura Vida

Costa Rica, Once a Week

The week's top stories, weather & insider tips — delivered every Sunday. One email, zero clutter.

🔒 Free. No spam. Unsubscribe anytime.

Loading…

Latest News from Costa Rica

Costa Rica Coffee Maker Chorreador
Costa Rica Car Rentals
Costa Rica Travel Insurance
Costa Rica Travel