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Aces Wired Inc. felt that they had found a grey are in the state laws in Texas that would allow them to operate gambling establishments out in the open. Authorities have been telling them they are wrong.
Several legal battles have been won by Ace recently that have given them the impression they had been correct in their assumption. They were within the legal limitations on gambling in the state, and were doing nothing illegal.
On Wednesday, the issue again resurfaced when authorities raided six of Aces’ locations. During the raids, police confiscated gambling machines and an undisclosed amount of cash.
The company was not pleased with the raids. “We believe the actions taken today are completely without merit and have no legal basis,” said Kenneth Griffith, Aces Wired President, in a written statement.
The grey are for Aces involved the way they rewarded their winning customers. They developed a system where players would use cards, similar to credit cards, to play the slot machines. Players would then receive their prizes through the cards. No money was ever exchanging hands.
The company had gotten so big, that they have recently signed sponsorship deals with both the Texas Rangers and the San Antonio Spurs.
Legal Battle May Resume Between U.S. And Antigua and Barbuda
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The final meeting has been set. The legal battle that has been going on between the United States and Antigua and Barbuda will once again surface in a couple of weeks.
That is unless the two sides can come to some kind of a compromise. Antigua and Barbuda is seeking compensation from the U.S. regarding a trade dispute over Internet gambling companies that register in the Caribbean.
The World Trade Organization has agreed to suspend making a ruling until a June 6th deadline. The two sides have until then to resolve the issue, or else it is back to the legal battle.
The Minister of Finance and Economy Dr. Errol Cort is in the U.S. this week and a Friday meeting is set to try and resolve the dispute. The case has been going on for several years.
It originated back in 2003 when Antigua accused the U.S. of violating trade treaties by not allowing Internet gambling companies that were registered in the Caribbean, to operate within the U.S.
The U.S. got off relatively easy when the WTO awarded Antigua a settlement of $21 million per year for trade sanctions. The U.S. has ignored that decision, however, and faces stiffer penalties by the WTO if the dispute is not resolved.