Free Trade & Processing Act (1994) - the world's first online casino licensing law (Antigua and Barbuda)

Free Trade & Processing Act (1994) - the world's first online casino licensing law

Brief summary

In 1994, Antigua and Barbuda adopted the Free Trade & Processing Act (also found in sources as the Free Trade and Processing Zone Act), allowing licenses to be issued to companies opening online casinos. This step laid the foundation for the Internet gambling industry and made Antigua the "pioneer" of state regulation of online games. The frame was later strengthened by Interactive Gaming & Interactive Wagering Regulations (2007) and subsequent oversight procedures through the Directorate of Offshore Gaming at FSRC.

1994 Context and Significance

In the early 1990s, Internet technologies and the first software systems for remote play developed rapidly. Against this background, Antigua and Barbuda passed a law in 1994 that allowed the issuance of licenses to companies to launch online casinos and other interactive services. This legislative innovation is considered the world's first attempt to formally license internet gambling at the state level, which quickly led to a surge in online projects in the Caribbean region.

What exactly did the Free Trade & Processing Act give

The right to license online casinos and related interactive services (games, bets), which created a "legal harbor" for operators.

Export Processing Zones (EPZ) tax and administrative regimes that facilitate the launch of projects and the placement of infrastructure. (For a general description of EPZ's role in early offshore online, see industry reviews and historical publications.)

Signal to the market: the presence of an official regime made Antigua & Barbuda one of the first addresses for online casinos and bookmakers in the mid - late 1990s.

Evolution of regulation: from "pioneer" law to mature regulations (2007 +)

To turn early licensing into full-fledged supervision, the regulator released Interactive Gaming & Interactive Wagering Regulations (2007). The documents established the typology of licenses (Interactive Gaming/Interactive Wagering), requirements for KYC/AML, audits, technical certification, reporting and application procedures (Schedules A-D). Supervision is carried out by the Directorate of Offshore Gaming (FSRC).

Global implications

Start of the online casino industry. Early licensing in Antigua was "moment zero" for the market: by the end of the 1990s, the number of sites had grown from tens to hundreds, and other jurisdictions began to create their own regimes.

Copying model. The success of the early Caribbean scheme spurred the emergence of new regulators (for example, the Kahnawake Commission - 1996), which accelerated global competition between jurisdictions.

International legal precedent. The export of online services from Antigua to the United States led to the WTO DS285 case. In 2007, a WTO arbitrator allowed Antigua to suspend US IP obligations of up to $21 million per year - the rarest form of countermeasures in trade law.

How the "bunch" of laws and regulations worked

1. FT&P Act (1994) opens up the possibility for online licenses → operators get a legal basis for launching.

2. IGIWR (2007) clarify procedures and compliance: questionnaires for legal entities and beneficiaries, requirements for customer identification, verification of age/residence, financial reporting, etc.

3. Directorate of Offshore Gaming (FSRC) Oversight: Accreditations, Monitoring, Positioning Antigua as "Tier-1 litigation of choice."

Discussions and criticism in the 1990s-2000s

Regulatory arbitration. Critics pointed out that operators were looking for the "most convenient" regimes, and the cross-border nature of the Internet was ahead of the local law of many countries. Historical reporting and reviews show how Caribbean EPZ models attracted startups but faced bureaucratic and technical risks.

Conflict of jurisdictions. American laws (Wire Act, etc.) came into conflict with the export of services from Antigua, which became the subject of a dispute in the WTO.

Historical chronology (milestones)

1994 - The Free Trade & Processing Act/Free Trade and Processing Zone Act was adopted: the start of issuing licenses for online casinos.

1996 - other regulators appear (for example, Kahnavake), a rapid increase in the number of sites begins.

2007 — выход Interactive Gaming & Wagering Regulations (IGIWR); formalization of supervision procedures.

2007 - In the case of DS285, the WTO allows Antigua countermeasures for $21 million/year through the suspension of US IP obligations.

Why it was a'world first'

Until 1994, there were telephone offshore bookmakers and attempts to take bets online, but it was Antigua and Barbuda's FT&P Act that became the first national law to explicitly allow online casino licences, creating a legal basis for the industry. This is confirmed by modern encyclopedic and industry sources.

The FT&P Act's legacy for the modern market

Regulatory precedent: the model "law + bylaws + specialized supervision" has become an industry standard.

Image of jurisdiction: Antigua cemented a reputation as an early and mature regulator of online gaming.

International discussion on cross-border services: Case DS285 is still cited in textbooks on trade law and digital services.

Free Trade & Processing Act (1994) - the starting point of the entire global history of online casinos. He not only legalized the first wave of Internet operators, but also launched a chain of regulatory innovations and international legal disputes, the impact of which is still felt - from IGIWR-2007 technical requirements to the WTO precedent for suspending IP obligations.

Note on terminology: in the Russian-language literature there are both forms of the name - Free Trade & Processing Act and Free Trade and Processing Zone Act. Both reference one 1994 piece of legislation on online licensing.