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release from Safe and Secure Internet Gambling Initiative, a lobbying group, said this is the first time a country has withdrawn from WTO obligations in response to a WTO decision.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

The massive influx of sargassum along Costa Rica's Caribbean coast has sparked fresh concerns over its effects on local ecosystems, fishing communities, and tourism....

Emma Raducanu Looking for a New Tennis Coach

Emma Raducanu insists she is in no rush to find a new coach as the former US Open champion looks to revert to a...

FIFA’s Infantino “Very Reassured” on Mexico World Cup Security

FIFA boss Gianni Infantino said on Tuesday he was "very reassured" about Mexico's hosting of games in the football World Cup, in his first...

Sargassum Buildup Grows on Costa Rica Northern Caribbean Coast

The Ministry of Environment and Energy (MINAE) has informed the public about the presence and increasing accumulation of sargassum along Costa Rica’s northern Caribbean...

Harvard’s Robert Waldinger Brings the World’s Longest Happiness Study to Costa Rica, Hosted by the UN-Founded University for Peace

One of the world’s leading experts on happiness and wellbeing is coming to Costa Rica, and time is running out to be part of...

Costa Rica Confirms Batista as La Sele’s New Head Coach

The Costa Rican Football Federation has named Argentine Fernando Batista as the new head coach of the national team, La Sele. The Executive Committee...
Avatar
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Travel

Latest News from Costa Rica