PEMBROKE PINES, Fla., March 29, 2004 (PRIMEZONE) -- AngelCiti Entertainment (OTCBB:AGEL) noted that Antigua and Barbuda, the Caribbean island nation, has won a World Trade Organization ruling in a finding that U.S. legislation and policies attempting to criminalize online betting violates WTO commercial services accords.
According to the Las Vegas Sun, attorneys for the Antiguan government declined to comment on the ruling. Antigua-based Internet companies handle a quarter of online bets in a global industry worth $6.1 billion. The country has lost more than $90 million in income from the U.S. ban. About a sixth of the government's $200 million annual revenue comes from the Internet gambling industry, Sir Ronald Sanders, Antigua's ambassador to the WTO, said in a telephone interview from London. "We lost many jobs as a result of the U.S. laws. This is justice done and a victory for the WTO dispute system," Sanders said. "This proves that a small country like ours can take on a big nation and win."
"We think that the implications of this ruling can enable us to more aggressively consider direct involvement in gaming operations and the acquisition of other online gaming companies," remarked AngelCiti president George Gutierrez, "fueling our drive to greater development, growth and profitability."
The complaint marks the first time a Caribbean country and any country with a population of less than 100,000 has taken a dispute to the WTO, he said. It's also one of few disputes to test the relatively new General Agreement on Trade in Services, one of three multilateral agreements that underpin the WTO, he said. Under the agreement, member countries have to make certain commitments to free trade. Though they didn't specifically endorse Internet gambling, the European Union, Canada, Japan, Mexico and Taiwan also filed briefs supporting some of the legal arguments made by Antigua in the dispute.
The Industry
A Bear Stearns report for the industry pegs annual revenue at $4.2 billion for 2003, while Christiansen Capital Advisors predicts a slightly more rosy picture pointing to an estimated $4.5 billion in revenue for calendar year 2002, saying 2005 revenue could exceed $10 billion. InformaMedia Group, which tracks electronic gambling, predicts that online gaming revenue will even reach $14.5 billion by 2006.
This news release contains forward-looking statements regarding AngelCiti's business strategies and future plans of operations. Forward-looking statements involve known and unknown risk and uncertainties. The company's risks and uncertainties include: intense price competition, economic, political and regulatory uncertainties, the need to raise additional capital for growth and expansion and its reliance on the internet as a means for promoting the software it sublicenses. The forward-looking statements contained in this news release speak only as of the date hereof and AngelCiti disclaims any obligation to provide public updates, revisions or amendments to any forward-looking statements made herein to reflect changes in AngelCiti's expectations or future events. The representations of net handle and gross net win in this press release are presented as measures of performance for the company that are different from those presented in the income statement in accordance with Regulation G promulgated by the Securities and Exchange Commission and are not to be considered as revenue or a GAAP related financial disclosure criteria.