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Costa Rica and US Reach Deal on Gambling Dispute
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Costa Rica has reached an agreement with the United States in a dispute about online gambling, trade officials said on Thursday. As a result Costa Rica has dropped its request for arbitration at the World Trade Organisation , they said.
The dispute arose after Washington announced in May last year that it would withdraw gambling from services it had opened up under a 1994 world trade deal. Under WTO rules the United States then had to offer access in other services to any of the WTO's 151 members who wanted it.
US Arrests 8 in Connection with Costa Rican Online Gambling Operation
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U.S. authorities arrested eight people on Monday in connection with a Costa Rica-based online sports gambling operation they said made millions of dollars in profits annually. Twelve men face charges including conspiracy and illegal gambling in an indictment unsealed on Monday in Manhattan federal court for their role in operating a gambling Web site and call center that serviced U.S.-based sports bookies.
U.S. prosecution of foreign online gambling companies has drawn criticism from such companies in Europe, who have accused the Justice Department of violating World Trade Organization rules by singling out foreign companies in such cases. In the latest case, U.S. prosecutors said that starting in 2005 Carmen Cicalese headed the operation out of Costa Rica, charging several hundred U.S. bookies weekly fees of $15 to $30 for each gambler they registered.