Back on September 26, the Interactive Media Entertainment and Gaming Association made its case to U.S. District Judge Mary Cooper as to why the Unlawful Internet Gambling Enforcement Act should be declared unconstitutional. A preliminary decision on whether iMEGA had legal standing to file a suit as well as a possible preliminary injunction against the regulations of the UIGEA could have been handed down by the end of October. Flash forward to January, 2008. In the New Year, iMEGA President Edward Leyden is still waiting for a preliminary ruling.

Just to remind you, iMEGA describes itself on its website as a “professional association dedicated to the continued growth and innovation of the Internet. We seek constructive engagement with government at the Federal and State levels to ensure that the challenges of this still nascent medium are addressed with the full participation of the people and companies that have built the Internet into the powerful influence on society it has become.”

One might think that Leyden and iMEGA would be discouraged by Judge Cooper delaying her verdict over two months. However, he is not swayed: “We’re still waiting for Judge Cooper. We haven’t drawn any conclusions. She’s a Federal Judge with a full docket on her plate. I think it’s safe to assume that she’s taking her time on the case to make sure she gets it right. We’re patient and confident the decision will be one we’re happy with. We believe that she’ll uphold our right to standing and we’ll go forward. She may grant the preliminary injunction which we’ve asked for. If either occurs, it’ll be big for our cause. If both occur, it will be an outstandingly important decision.”

Leyden is in touch with the court’s clerks and chambers as needed. He’s constantly walking a fine line between being persistent and being intrusive. As a litigator for over 20 years by trade, Leyden claims the delay is “par for the course.” There has been no timeline given for a formal decision to be passed down.

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In the waning hours of the 2006 Congressional session, Congress passed the Safe Port Act, designed to “improve maritime and cargo security through enhanced layered defenses,” according to the U.S. House website. With passage of the Safe Port Act came a very important rider: The Unlawful Internet Gambling Enforcement Act. Congress was clueless as to the bombshell it was about to drop on the rest of the globe. The issue has spilled over into the World Trade Organization, which has been in the center of a dispute involving the European Union, Antigua, and the United States. Late in December, Reuters broke a story saying that the EU had accepted a deal.

The issue stems from the United States not allowing gambling from offshore betting houses within its borders, essentially withdrawing from a treaty it had signed earlier. It was exacerbated by passage of the UIGEA and has garnered major international attention. While gambling online in the United States may be questionable in the minds of some, the fact is, according to a recent Financial Times article, “European gaming companies claim to be losing $4 billion annually as a consequence of the U.S. decision to shut its online gambling market, the most lucrative in a growing global business worth $15 billion to $20 billion a year. Until legislation passed by the U.S. Congress [in 2006], which prohibits banks and credit card companies from processing payments to online gamers, the U.S. accounted for half of all online gambling customers worldwide.”

The concessions given by the United States allow the E.U. to tread on “warehousing, technical testing, research and development and outbound international letter delivery.” The extent to which U.S. companies such as UPS, DHL, or FedEx will be affected is unknown. Both of those corporations are coming off the busy time of the year for them and this may be some Scrooge-like news. The Los Angeles Times quoted a spokesperson for Austrian-based Bwin as saying, “We continue to believe that it is better to regulate than to prohibit, because the reality shows that the prohibition only drives out the transparent, listed operators.” An agreement was reached late in the day on a Friday, essentially buried in the weekend news leading up to the holidays. It was eerily similar to the UIGEA, which was itself passed in the witching hours of a Friday night.

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This past December, the United States settled a trade dispute with Canada, Europe, and Japan over the recently enacted Unlawful Internet Gambling Enforcement Act.

The problem is that the law carves out exemptions for some forms of gambling, such as state lotteries and domestic horse racing, while banning most other forms, most notably poker, the most popular form of online wagering.

The most popular online poker sites are all based overseas, where online gambling is legal. This gave rise to the trade dispute between the U.S. and most of the rest of the western world.

The U.S. Trade Office won’t release the terms of the settlement—an odd development itself, given that the settlement involves U.S. tax dollars, was negotiated by employees of the U.S. government, and isn’t likely to involve any information related to national security. But most experts believe that given the immense popularity of online poker, and the fact that America is home not only to most of the world’s poker players but also the wealthiest, the settlement was likely in the tens of billions of dollars.

The U.S. was negotiating from a position of weakness. For the last few years, the tiny island nation of Antigua has been challenging the U.S. online gambling ban in the World Trade Organization. Antigua has won every step of the way.

Last week, just days after the U.S. settlement with Europe, Japan, and Canada, the WTO awarded Antigua $21 million in annual reparations for losses to the Antiguan economy caused by the American ban on Internet gambling. Because tariffs on U.S. goods would hurt the Antiguan economy far more than the U.S. economy, the WTO gave the okay for Antigua to recoup its losses in the form of copyright infringement, essentially making the country a haven for movie, music, and software piracy.

Had the U.S. not settled with the world’s economic powerhouses, we might have seen a massive battle unfold between the U.S. entertainment industry and the moral majority types behind the gambling ban.

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American companies may suffer from the legal piracy of movies, music, computer programs, and other intellectual property after the international regulator of free trade, the World Trade Organization, ruled that a ban on Internet gambling services provided by companies abroad is unlawful.

The WTO decision this week is the culmination of a long-running dispute between the U.S. Commerce Department and foreign gambling companies that are forbidden by American law from accepting bets from Americans.

In a test case brought by Antigua and Barbuda, the Caribbean islands were granted permission to ignore intellectual property rights owned by American companies in compensation for the loss of earnings caused by federal statutes and four American states that have outlawed Internet gambling. The American government responded robustly and with a veiled threat of withholding American investment, claiming in a statement that “it would establish a harmful precedent for a WTO Member to affirmatively authorize what would otherwise be considered acts of piracy, counterfeiting, or other forms” of intellectual property rights infringement.

Sean Spicer, a spokesman for U.S. trade representative, Susan Schwab, said further that if the islands began ignoring American copyright laws, it “would severely discourage foreign investment in the Antiguan economy.”

Antigua was quick to try to mollify the dispute. “Antigua doesn’t want to negate American intellectual property rights. They don’t want to sell … DVDs and copies of Microsoft Office,” the lawyer who represented Antigua in the WTO proceedings, Mark Mendel, said in a press statement.

The WTO ruled that the gambling ban was against the principles of the General Agreement on Trade in Services, the free trade deal of which America is a party, and that America’s failure to comply should be punished by allowing countries affected to ignore copyright laws protecting intellectual property owned by American companies.

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The Remote Gaming Association (RGA) has filed a complaint against the US under the European Union’s Trade Barriers Regulation on behalf of European online gambling companies. Clive Hawkswood, RGA’s Chief Executive said, “We have been left with no choice but to pursue all legal avenues available to challenge the US Department of Justice for its discriminatory enforcement activities against European online gaming operators.”

In their press release, the RGA pointed out that while the US Department of Justice continues to claim that all online gambling is illegal and has exerted pressure on foreign online gaming companies with forfeitures and threatened prosecutions, they have left domestic online gambling companies, specifically relating to online horseracing wagering, unfettered.

RGA’s announcement comes on the heels of the WTO settlement between the European Union and the US. In a case initiated by Antigua and Barbuda, the WTO determined that US online gambling laws and policies were discriminatory and violated the conditions of their trade commitments. Rather than conform to the 1994 services agreement, the US filed to withdraw access to its online gambling market from WTO trading partners, opening the floodgates of compensation claims against the US. The terms of the agreement granted the EU access to previously restricted US postal, warehousing and analysis and testing markets, but represented no compensation to the very online gaming companies that were being discriminated against.

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Antigua and Barbuda’s finance minister said he is hopeful an international ruling giving his nation the right to impose limited trade sanctions against the U.S. will push Washington to resolve a long-running dispute over Internet gambling.

The World Trade Organization on Friday backed Antigua’s request to target U.S. services, copyrights and trademarks in retaliation for a U.S. online betting ban — but will allow it to impose only $21 million in annual trade sanctions.

Finance Minister Errol Cort described the WTO’s decision as a setback for his twin-island nation, which had sought to apply $3.4 billion in retaliatory measures against U.S.

Still, the ruling could pave the way for resolution, he stressed.

“We think that this decision, as terribly flawed as it may be, should still have the desired result of getting the U.S. to sit down with us and seek an amicable resolution,” Cort said in a statement on Friday. “We look forward to meeting with the U.S. delegation in the very near future.”

Neither the U.S. nor Antigua can appeal the WTO decision.

Antigua accuses the U.S. of crippling its gaming industry by banning Americans from placing online bets with gambling operators, including those based in the Caribbean nation. It sought impose trade sanctions in retaliation for lost revenue.

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You might have noticed a new addition to PocketFives.com. You can find it on the left hand menu of the site, right next to the words you’re reading. It’s the Poker Legislation Forum and it’s the place to find all of the news and analysis of the online poker bills that will affect your life in the near future. Headed into 2008, it’s the main goal of the Poker Players Alliance to pass one of the pending pieces of legislation currently awaiting their turn in Congress. PocketFives.com is working hand in hand with the PPA to bring the latest from the legislative front to your fingertips.

PPA Executive Director John Pappas talks about what the forum means to his lobbying force: “It’s a good outlet for us. We believe that all poker players should become engaged politically. What better way to become involved than through forums. We appreciate that PocketFives.com has added the Poker Legislation forum.” The PPA has ballooned to 850,000 members, many of whom are PocketFivers who have stepped up to the plate to become involved politically.

What can you expect when you check out the Legislative Forum? Pappas hopes to enrich your mind: “I think it’s an opportunity to share news that people might not necessarily read in the mainstream press. It’s also a place for us to share insights as to how our lobbying efforts are going and to provide updates. We want to make sure that there’s enough information provided in the forums so that people who want to act on their own can go to Poker Legislation forum, get briefed up on the issues and talking points, and then go ahead and write or call a member themselves.” Right now, you can find a list of 16 Congressmen who submitted comments on the UIGEA regulations against the online poker cause, a discussion of why anyone would be against online poker in the first place, and a chance to win a full-sized PPA poker table.

At the forefront of the Poker Legislation forum is Rich Muny, known as TheEngineer. He’s been involved on the poker front independently for quite a while. Pappas explains how he became involved with the PPA: “He came to me after posting in various forums and writing letters to Congressmen and carbon-copying us on them. He’s bright, articulate, and passionate. This is the type of person we like to harness. I reached out to Rich and asked him to be on our Board of Directors. He represents the ‘Average Joe’ poker player. I thought it’d be a good way to broaden our Board and bring a passionate person into our inner circle. This is all voluntary for him. It’s all on his own time and volition. He and I discuss strategy and ideas regularly every week.”

PocketFives.com Co-Founder Adam Small talks about how the forum came to be: “We wanted to step up and create a forum where people could not only discuss legislation, but also hear regularly from those who are the best informed on these issues such as the Poker Players Alliance. A lot of this information is difficult for people to find on their own and we now have a central location where people can get their questions answered and also hear about current events that they might otherwise not have known about.” PocketFives has worked hand in hand with the PPA on several initiatives in the past, including the Phone March on Washington and Write Your Congressman Day when the UIGEA originally took shape.

One of the efforts you’ll see touted in the Poker Legislation forum in the near future is a 2008 voter registration campaign. With an election year looming, the PPA is out to mobilize its membership base to get out to the polls. Pappas comments, “The PPA will be rolling out a voter registration campaign in 10 to 20 key Presidential swing states. Part of our offering for 2008 is a congressional scorecard, so when people go into elections in 2008, they’ll know where the candidates stand on the online gaming issue.”

Small claims there are big things ahead that will make the newly-developed forum even better: “I expect there to be a lot of information there all the time and, in time, it will be the place where people know to look if they want up-to-date information on poker legislation. I expect people to be able to find more information in this forum than anywhere else on the net about the ongoing efforts to better the legal landscape for poker players everywhere.”

There’s a ton of information and debate in the Poker Legislation forum. You’d be amiss if you didn’t check it out. After all, it’s your future at stake. Visit the Poker Legislation forum today by clicking here.

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The United States faces a token $21 million in annual trade sanctions as a result of its online betting ban, the World Trade Organization said Friday in awarding Antigua and Barbuda the right to target U.S. services, copyrights and trademarks.

The decision is a setback for the Caribbean island nation, which sought the right to impose $3.4 billion in retaliatory measures against U.S. commercial services and intellectual property.

Washington acknowledged its Internet gambling restrictions were ruled illegal by the WTO, but argued that Antigua should only be compensated for about $500,000 for lost annual revenue.

The case has drawn the attention of a number of U.S. industries, partly because of the ways Antigua has proposed retaliating against the much larger U.S. economy. Washington’s attempt to escape its legal loss by proposing a revision of the WTO’s key treaty on trade in services has also fueled interest.

The office of the U.S. Trade Representative noted that Antigua was seeking sanctions worth more than three times the size of its entire economy.

“Antigua’s claim was patently excessive,” it said in a statement. “The United States is pleased that the figure arrived at by the arbitrator is over 100 times lower than Antigua’s claim.”

However, the U.S. said it was concerned that Antigua could now violate some American intellectual property rights — which could range from CDs and DVDs to computer software, industrial designs and designer clothing.

The ruling could “establish a harmful precedent for a WTO member to affirmatively authorize what would otherwise be considered acts of piracy, counterfeiting or other forms of … infringement,” the U.S. said.

The U.S. and Antigua cannot appeal Friday’s decision.

Realistically, it would have been very difficult for a country the size of Antigua’s to implement hundreds of millions of dollars worth of trade sanctions on the U.S. without harming its own economy and the welfare of its citizens. Ecuador was awarded similar retaliation rights in a bananas dispute with the European Union in 2000, but failed to come up with an effective way to introduce countermeasures.

The WTO arbitration panel said it had to adopt its own approach to come up with a fair retaliation figure in view of the wide difference in how the U.S. and Antigua estimated the economic effect of the gambling ban.

“In doing so, we feel we are on shaky grounds,” the panel said in an 88-page decision.

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Today marked another mile-stone in the effort to legalize certain Internet skill games at the federal level.

Rep. Robert E. Andrews [NJ-1] became the 21st representative to co-sponsor the Skill Games Exemption bill H.R. 2610 offered by Florida congressman, Robert Wexler.

Congressman Andrews is currently serving his 10th term in congress. During that time he has served on the Education and Labor Committee and is currently the chairman of that committee. He also is on the Subcommittee of Higher Education, Lifelong Learning and Competitiveness.

He sits on the House Armed Services committee and the Subcommittees of Oversight and Investigations, as well as Terrorism and Unconventional Threats committees, and he also serves on the Budget Committee.

The Philadelphia Inquirer credits him as “being properly focused on fixing the looming fiscal disaster in Washington.”

The congressman in not typical of most, he takes the train from his home daily in New Jersey and returns from Washington DC to his family the same night. Over his career he has been a strong supporter of his constituents and is known for fighting for them and their needs.

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