Costa Rica demands compensation from US:
With the US withdrawing its commitments with the World Trade Organization about online gambling matters, the Central American nation of Costa Rica has now joined Antigua in getting a compensation claim.
Online gambling is an important contributor to the economy of the country through online bingo games companies, online bingo halls and online gaming operators.
With the new claim, it is expected that the agreement that was reached between EU and the US would get derailed.
This agreement was about the arbitration filing which made it possible for EU to think of reconsidering the present settlement.
Many European online gaming and online bingo companies have criticized this EU deal and think that this move by Costa Rica is a means of refocusing attention on the policy US has over anti-online gaming policies.
With Antigua and Costa Rica taking US to arbitration, the limits of the WTO process is tested while challenging the resolve of US in withdrawing its GATs commitments. This was stated by Nao Matsukata, the present Senior Advisor for Alston and Bird LLP.
However if the US finds the WTO arbitrator’s decision unacceptable, the General Agreement on Trade and Services states that US could withdraw to create a crisis of confidence in the global trading system.
So the best option is for US congress to pass a rule that creates a legal and regulated ideology for online gaming in US, and for the US to remain in the GATs schedule while providing providers legal protection in WTO.
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