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release from Safe and Secure Internet Gambling Initiative, a lobbying group, said this is the first time a country has withdrawn from WTO obligations in response to a WTO decision.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

Panama Mayor Orders Demolition of Chinese Monument Near Canal

A Chinese monument at the entrance to the Panama Canal was knocked down late Saturday on orders from the municipal government of Arraiján, in...

U.S. Embassy Opens SUSI Scholarship Applications for Costa Rican Students and Teachers

The U.S. Embassy in Costa Rica has begun taking applications for the Study of the U.S. Institutes (SUSI) programs, targeting university students and high...

Australian Open Champion Stan Wawrinka to Retire After 2026 Tour Season

Swiss tennis star Stan Wawrinka has declared that 2026 will mark the end of his professional career, setting up a poignant send-off at the...

Panama Targets Tankers in U.S. Sanctions Crackdown on Venezuelan Oil

Panama's government plans to discipline several oil tankers flying its flag after U.S. authorities targeted them for breaking rules. Foreign Minister Javier Martínez-Acha made...

Costa Rica’s Escalating Drug-Related Killings Grip Quepos and Parrita

Drug gangs fighting for control have left 95 people dead in Quepos and Parrita since January 2024, according to data from the Judicial Investigation...

What to Expect at Costa Rica’s El Tope Parade

Thousands of riders and spectators gather today for El Tope Nacional, marking the Day of the Horseman in Costa Rica. This year, the event...
Avatar
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Travel

Latest News from Costa Rica