The tiny online gaming haven of Antigua announced intentions to sue the United States government for a whopping $30 million dollars claiming it has interfered with the economy of that Caribbean island through countless attempts to quash Internet gambling.
Prime Minister Lester Bird told the Antigua Sun his government will be taking the US government before the Grievance Committee of the World Trade Organisation for restraint of trade and interfering with Antigua & Barbuda sports book and internet gaming.
"I would say that we have lost about US$30 million as a result of the constant attack upon the industry by members of the US Congress, the Leach Bill, the Kyle Bill and the taking on board by the US government in preventing corresponding banks to deal and operate with these different activities which we feel are particular legitimate," Bird said.
He went on to suggest that a vast number of these gaming operators have emigrated to Costa Rica in recent years in fear of persecution by remaining a part of the Antigua landscape.
While we applaud Antigua for taking a stand, there are indeed a number of variables that led to this "mass exodus" from the island, and it soon becomes quite evident the U.S. government has had little to do with such a dismantling of the island's economy.
First off I would be remiss in pointing out how the Antiguan government has stood by three of its top sports book operators after they were indicted by U.S. law enforcement officials in 1998 with almost reckless abandonment. Bill Scott and Jessica Davis, both of World Wide Tele Sports, and Jay Cohen, founder of World Sports Exchange, have always had a shoulder to cry on (at least in theory) when it comes to Lester Bird's government. The buck stops there, however.
Cohen, during his brief tenure on the island, acted as a sort of unofficial liaison between many of the sports betting operations and the Directorate's office. After he left to face charges in the States, Bobby Eremian, founder of Sports Off Shore, assumed his role. A big mistake as it turned out! While Cohen tended to be outspoken and well liked, Eremian tended to be outspoken as well, but despised by some of those in power.
When the government attempted to impose what many viewed as an unfair taxation on gaming businesses, in addition to a black box that would monitor all customer transactions for "ensuring integrity", Eremian expressed his utter disgust, and hinted that Antiguan officials used a position of "wanting to safeguard the industry" as a means of lining their own pockets. In an effort to prevent gaming businesses from becoming polarized, Eremian spearheaded animated meetings between operators and government officials that often led to some heated debate. Not soon after, Eremian was deported back to the United States to face tax evasion charges by those same Antiguan officials who promised to protect their gaming operators from the long arm of U.S. law enforcement. This matter was made worse by the fact that the charges levied against Eremian were not even extraditable under an agreement between the two nations.
Such an act has always deterred online gaming operators from even considering Antigua as a viable option, especially when one considers the fear instilled in them by a U.S. government that regularly attempts to crack down on this ever expanding industry.
Corruption and self-interest agendas, at least on a perceived level, are yet other factors contributing to the implosion of the island's once thriving gaming industry. When behemoth Starnet Communications (now World Gaming) arrived with several dozen licensees in tow, many existing sports books and casino operators felt the giant software company was being given preferential treatment. There were even indications that the Directorate (then Gyneth McCallister) owned shares of stock in Starnet.
Even long after Jay Cohen's arrival back in the United States, World Sports Exchange's co-founder expressed outrage over the cozy relationship and perceived conflicts of interest. McAllister declined comment whenever inquiries were made in regard to Starnet and when one of their sublicensees began slow paying customers, she nor any of her colleagues would return emails inquiring about the matter. Eventually the sublicense paid only after we approached Starnet's largest and most influential licensee to apply pressure on the software company. The Antiguan Directorate's office, as is so often the case, proved to be completely useless.
Although claiming to be the quintessential regulatory body when it comes to online gambling jurisdictions, Antigua has repeatedly failed in protecting players from "rogue" or otherwise "deadbeat" operators. When Alladin's Gold owner, Eddie Hadeed, stopped paying his customers (not to mention stealing their deposits), The Directorate's office almost immediately issued a statement requesting that affected parties contact them. Upon doing so, the Directorate seemingly just ignored all emails despite an outcry from various "watchdog" sites requesting they take more of a definitive stance in rectifying the issue. Antigua never did!
It is common knowledge that Eddie's family wields quite a bit of power on the tiny island with a population of just over 60,000. The Hadeeds, who arrived in Antigua at the turn of the twentieth century, were breeders of prized stallions in their native Syria. They brought with them great wealth and over the decades the family assumed ownership of valuable real estate, a bottled water facility and two restaurants. Even Cohen expressed outrage to Yours Truly back in 2000 that Eddie Hadeed was among the only gaming operators who supported the controversial "black box" issue and refused to attend any of the meetings organized by gaming operators. There were many who believed Eddie acted as an "informant" for the Antiguan government.
Indeed, when Eddie was exposed as a "fraud" by xxxxx website back in 2000, he immediately ran to his colleagues (most notably World Wide Tele Sports late bookmaker, Roger) and requested that they discredit xxxxxx claims. This despite the fact that Bobby Eremian of SOS had told us he refused to conduct wire transfers with Hadeed. There are those who suggest that some operators feared not siding with Eddie in fear of retribution.
In retrospect, the Antigua government needs to take a long hard look in the mirror. As much as we love when an opportunity arises to bash the U.S. for its unrealistic and often conflicting stance pertaining to Internet gambling, the situation here does not warrant such an outcry. It is the Antiguans who have undermined the integrity of the gaming industry on that island. They have since seen the potential such businesses bring to an economy (10,000 plus new jobs created in Costa Rica), a potential that may never be realized within this tiny Caribbean nation, and they have only themselves to blame.
Prime Minister Lester Bird told the Antigua Sun his government will be taking the US government before the Grievance Committee of the World Trade Organisation for restraint of trade and interfering with Antigua & Barbuda sports book and internet gaming.
"I would say that we have lost about US$30 million as a result of the constant attack upon the industry by members of the US Congress, the Leach Bill, the Kyle Bill and the taking on board by the US government in preventing corresponding banks to deal and operate with these different activities which we feel are particular legitimate," Bird said.
He went on to suggest that a vast number of these gaming operators have emigrated to Costa Rica in recent years in fear of persecution by remaining a part of the Antigua landscape.
While we applaud Antigua for taking a stand, there are indeed a number of variables that led to this "mass exodus" from the island, and it soon becomes quite evident the U.S. government has had little to do with such a dismantling of the island's economy.
First off I would be remiss in pointing out how the Antiguan government has stood by three of its top sports book operators after they were indicted by U.S. law enforcement officials in 1998 with almost reckless abandonment. Bill Scott and Jessica Davis, both of World Wide Tele Sports, and Jay Cohen, founder of World Sports Exchange, have always had a shoulder to cry on (at least in theory) when it comes to Lester Bird's government. The buck stops there, however.
Cohen, during his brief tenure on the island, acted as a sort of unofficial liaison between many of the sports betting operations and the Directorate's office. After he left to face charges in the States, Bobby Eremian, founder of Sports Off Shore, assumed his role. A big mistake as it turned out! While Cohen tended to be outspoken and well liked, Eremian tended to be outspoken as well, but despised by some of those in power.
When the government attempted to impose what many viewed as an unfair taxation on gaming businesses, in addition to a black box that would monitor all customer transactions for "ensuring integrity", Eremian expressed his utter disgust, and hinted that Antiguan officials used a position of "wanting to safeguard the industry" as a means of lining their own pockets. In an effort to prevent gaming businesses from becoming polarized, Eremian spearheaded animated meetings between operators and government officials that often led to some heated debate. Not soon after, Eremian was deported back to the United States to face tax evasion charges by those same Antiguan officials who promised to protect their gaming operators from the long arm of U.S. law enforcement. This matter was made worse by the fact that the charges levied against Eremian were not even extraditable under an agreement between the two nations.
Such an act has always deterred online gaming operators from even considering Antigua as a viable option, especially when one considers the fear instilled in them by a U.S. government that regularly attempts to crack down on this ever expanding industry.
Corruption and self-interest agendas, at least on a perceived level, are yet other factors contributing to the implosion of the island's once thriving gaming industry. When behemoth Starnet Communications (now World Gaming) arrived with several dozen licensees in tow, many existing sports books and casino operators felt the giant software company was being given preferential treatment. There were even indications that the Directorate (then Gyneth McCallister) owned shares of stock in Starnet.
Even long after Jay Cohen's arrival back in the United States, World Sports Exchange's co-founder expressed outrage over the cozy relationship and perceived conflicts of interest. McAllister declined comment whenever inquiries were made in regard to Starnet and when one of their sublicensees began slow paying customers, she nor any of her colleagues would return emails inquiring about the matter. Eventually the sublicense paid only after we approached Starnet's largest and most influential licensee to apply pressure on the software company. The Antiguan Directorate's office, as is so often the case, proved to be completely useless.
Although claiming to be the quintessential regulatory body when it comes to online gambling jurisdictions, Antigua has repeatedly failed in protecting players from "rogue" or otherwise "deadbeat" operators. When Alladin's Gold owner, Eddie Hadeed, stopped paying his customers (not to mention stealing their deposits), The Directorate's office almost immediately issued a statement requesting that affected parties contact them. Upon doing so, the Directorate seemingly just ignored all emails despite an outcry from various "watchdog" sites requesting they take more of a definitive stance in rectifying the issue. Antigua never did!
It is common knowledge that Eddie's family wields quite a bit of power on the tiny island with a population of just over 60,000. The Hadeeds, who arrived in Antigua at the turn of the twentieth century, were breeders of prized stallions in their native Syria. They brought with them great wealth and over the decades the family assumed ownership of valuable real estate, a bottled water facility and two restaurants. Even Cohen expressed outrage to Yours Truly back in 2000 that Eddie Hadeed was among the only gaming operators who supported the controversial "black box" issue and refused to attend any of the meetings organized by gaming operators. There were many who believed Eddie acted as an "informant" for the Antiguan government.
Indeed, when Eddie was exposed as a "fraud" by xxxxx website back in 2000, he immediately ran to his colleagues (most notably World Wide Tele Sports late bookmaker, Roger) and requested that they discredit xxxxxx claims. This despite the fact that Bobby Eremian of SOS had told us he refused to conduct wire transfers with Hadeed. There are those who suggest that some operators feared not siding with Eddie in fear of retribution.
In retrospect, the Antigua government needs to take a long hard look in the mirror. As much as we love when an opportunity arises to bash the U.S. for its unrealistic and often conflicting stance pertaining to Internet gambling, the situation here does not warrant such an outcry. It is the Antiguans who have undermined the integrity of the gaming industry on that island. They have since seen the potential such businesses bring to an economy (10,000 plus new jobs created in Costa Rica), a potential that may never be realized within this tiny Caribbean nation, and they have only themselves to blame.
