SOURCE: Antigua Sun

The government of Antigua and Barbuda is closely monitoring progress on legislation in the United States which could have a major impact on its Internet gambling industry.

Responding to a query from the Antigua Sun, Minister of Finance and the Economy Dr. Errol Cort said that he has been following the discussions surrounding the United States' Unlawful Internet Gambling Enforcement Act, the legislation which effectively knocked most internet gambling countries out of the U.S. market.

The Act, which makes it illegal for U.S. financial institutions to process transactions related to online gambling, was passed in the U.S. last year, but has not been put into effect since supporting regulations have not been finalised.

It is significant since it cuts off the main avenues for gaming companies to remit payments to their clients.

A recent congressional hearing on those regulations saw strong opposition coming from national banking and credit union bodies.

"I’m not surprised in terms of the position taken by the American Banking Association and other interest groups because the legislation seems to be quite onerous. It seems to put a lot of burden on the banking sector to be police man for the Congress and the banks are pushing back in respect of that particular situation," he said.

"The matter is very fluid. We’re watching it because if that bit of legislation is operationalised, it would really cause serious, serious difficulties for the industry - so we have a very keen interest in the matter."

Dr. Cort again drew reference to the Internet Gambling Regulation and Enforcement Act (IGREA) as a better path forward.

The IGREA Bill, which was introduced by Representative Barney Frank, a Democrat and chairman of the House Financial Services Committee, aims to replace the broad prohibition inherent in the UIGEA with strict regulations and protection for vulnerable groups like minors and compulsive gamblers.

Meanwhile, Antigua and Barbuda’s attorney at the World Trade organisation Mark Mendel said that he thought the recent developments are good, particularly since it is stimulating meaningful discourse on the issue.

"What we’re looking for is a change in attitude in the United States and an ultimate acceptance of regulated internet gamblers. It is a direction that the rest of the world has either already moved to or is moving to and I think this latest legislation by Barney Frank, the testimony up on Capital Hill, I think that is doing a good job towards educating the American public on this issue and how just completely unworkable a prohibition is… It works in our favour," Mendel said.