Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Gyneth McAllister MBA, Director of Offshore Gaming, Antigua & Barbuda from 1993 until 2000
Interview
Gyneth McAllister, MBA
Antigua’s First Director of Offshore Gaming
by Ian Sherrington
December 2024
Series – The Online Gambling Industry
The Paperwork – Jurisdictions, Legal and Compliance
Antigua’s glorious English Harbour
Antigua’s Role in the Origins of Online Gambling
The Caribbean nation of Antigua and Barbuda played a pivotal role in the early days of online gambling, spearheading regulations and infrastructure that attracted global attention. As one of the first jurisdictions to recognize the potential of the burgeoning internet gambling market, Antigua became a hub for innovation, investment, and controversy.
To better understand Antigua’s journey as a pioneer in online gambling, I spoke with Gyneth McAllister, MBA, who served as Expediter of International Investment and later as Director of Offshore Gaming for Antigua and Barbuda during the industry’s formative years.
Gyneth is now an International Business Consultant running her own business in the US.
Latest Articles
Sir Vere Cornwall Bird, Antigua’s first Prime Minister
Ian: Antigua was the birthplace of the internet gambling industry. During the early days, your name was closely associated with the regulation and well-being of the online gambling sector in Antigua. Thanks for taking the time to answer a few questions.
What was your journey to achieving your first position as Expediter of International Investment?
Gyneth McAllister: The development of international investment in the economy was a goal of Vere Cornwall Bird, the Prime Minister of Antigua, who recruited me to return to Antigua from the UK to help attract international investors to the tourism industry. After Bird passed, his son, Lester Bird, took over as Prime Minister and created the position of Expediter of International Investment. This position was created for me, as I had already been functioning unofficially as a facilitator of international investment and a conduit between the expatriate population and the government.
To prepare for the evolving regulatory landscape, the Prime Minister assigned me to undergo specialized training. I was immersed in internet and telecom structures, trained by Price Waterhouse in international business protocols and offshore financial structures, including offshore insurance, banking, corporate entities, and free trade zones.
Simultaneously, I was assigned to work with the Ministry of Justice and Legal Affairs under Attorney General Dr. Clare Roberts, who also served as regional head of the United Nations Committee on International Money Laundering. There, I received training in identifying and mitigating money laundering activities. Additionally, I worked with the Solicitor General to develop skills in legislative drafting.
The legendary King’s Casino (Antigua Observer)
Ian: What was the gambling and political landscape in Antigua in the early 1990s, just before online gambling emerged?
Gyneth McAllister: At that time, there were already a few land-based casinos—Kings Casino and the Royal Antiguan Hotel, if I remember correctly—alongside illegal sportsbooks.
Cable & Wireless discovered unusually high phone bills, competing satellite connections that bypassed their network, and a sudden influx of phone line requests. Upon investigation, it was revealed that U.S. sportsbooks were operating unofficially under licenses tied to small, local gambling shops.
They had applied for and received licenses to operate physical operations in conjunction with two small gambling shops in center of town, only known to locals and limited to a few antiquated machines. These sport books were paying the owners to operate under their license.
My role, empowered by Prime Minister Lester Bird, was to investigate, regulate, and bring these operations under control. So, the next step was to eliminate these practices and draft specific legislation. This included expelling sportsbooks operated by individuals identified by their governments as having broken U.S. laws—cases where mutual legal cooperation existed under Antigua and Barbuda’s laws.
Raids targeted operations that refused to comply with the new regulations, as well as individuals labeled as criminals by their own governments. These operators, all U.S.-based, were eventually extradited.
What remained were telephone sportsbooks and internet casino operators who agreed to provide full transparency into their operations.
Ian: How did Antigua become an attractive jurisdiction for online gambling operators and software companies?
Gyneth McAllister: We had several advantages: good telecom infrastructure, favorable banking systems, and a clear path for regulation.
The ‘big four’ software companies—Microgaming, Cryptologic, Boss Media, and Playtech—all got their start in Antigua.
We also received significant international media coverage from outlets like HBO, CBS, Sports Illustrated, WIRED, The Washington Post, and the Wall Street Journal, which highlighted our regulated environment.
This kind of exposure reassured companies that we were serious about transparency and oversight.
Ian: Who were the first licensees and operators, and what was the licensing process like?
Gyneth McAllister: The first operators included The Gaming Club (1995), InterCasino (1996), and earlier groups like World Wide Telesports and Starnet Communications, which began operations around 1993.
The licensing process required an offshore company to be incorporated under our free trade zone legislation. The owners’ profiles were sent to Interpol and the FBI for background checks, while Price Waterhouse (now PwC) conducted due diligence.
While drafting the final regulations, provisional licenses were granted but were revoked if background checks uncovered anything deleterious. For instance, we closed World Wide Telesports and removed operators like Robert Eremian and Bill Scott for U.S. legal violations.
Bill Scott
The legendary Bill Scott faced legal challenges due to his involvement in offshore internet gambling operations In 1998, he was indicted in the Southern District of New York for conspiring to violate the Wire Act. Residing in Antigua at the time, Scott avoided arrest and remained a fugitive for nearly 15 years.
In April 2005, a 12-count indictment was filed against Scot, in the District of Columbia, charging him with money laundering, violations of the Wire Act, and other offenses related to WWTS.
In September 2012, Scott returned to the United States and pleaded guilty to one count of conspiracy to violate the Wire Act and three counts of international money laundering. As part of his plea agreement, he consented to the civil forfeiture of approximately $6.98 million traced to international money laundering of proceeds from his offshore internet gambling operation.
In January 2013, Scott was sentenced to three years of probation for his offenses. His company, WWTS eventually merged with publicly traded Australian wagering firm BetCorp before being acquired by Bodog.
Robert Eremian
Robert Eremian was a key figure in an illegal offshore gambling operation known as “Sports Offshore,” which was based in Antigua and targeted U.S. customers. In the early 2000s, he was indicted in Massachusetts on charges related to illegal gambling activities. Eremian fled to Antigua to avoid prosecution and remained a fugitive for over a decade.
In March 2024, Eremian was arrested and extradited to the United States. He pleaded guilty to charges of operating an illegal gambling business and transmission of wagering information. In June 2024, U.S. District Court Judge Patti B. Saris sentenced him to 36 months in prison, followed by one year of supervised release, and ordered him to forfeit $7.7 million.
Eremian’s brother, Daniel Eremian, was also involved in the operation and was sentenced to three years in prison in 2012. He was released in 2014 after serving two years.
The Eremian brothers’ gambling operation was notable for its extensive reach within the United States, employing numerous agents and handling millions of dollars in illegal wagers. Their prosecution was among the first under the Unlawful Internet Gambling Enforcement Act (UIGEA) enacted in 2006.
Click to run the Wayback Machine
Ian: Operators like Jay Cohen (WSEX) and others faced US indictments in the late 1990s. How did you handle these controversies?
Gyneth McAllister: The US indictment of World Sports Exchange (WSEX) was particularly complex. WSEX operated more like a live odds exchange rather than a traditional sportsbook. I personally testified on behalf of WSEX in US courts, as they were operating transparently under full regulation. Steve Schillinger, Jay Cohen, and Hayden Ware helped fine-tune our regulatory language to reflect the exchange model.
Ian: The stricter regulations you implemented were seen as too tough, causing some operators to leave. What changes were made, and why?
Gyneth McAllister: I introduced the black box legislation, which was the first point of contention. The black box filtered wagers through an intermediary layer before they hit the primary server, allowing for oversight of wager amounts and types. And the server response was also filtered and visible. I also implemented requirements for escrowed funds or affiliation with larger sportsbooks to guarantee payouts, similar to the Las Vegas model.
These measures protected both operators and patrons from risks like money laundering and insolvency, but not everyone welcomed them. My life was threatened because of these regulations.
Ian: What was your role in the WTO dispute between Antigua and the U.S.?
Gyneth McAllister: I testified during the WTO dispute and worked closely with Jay Cohen’s legal team. The case highlighted the U.S.’s unfair restrictions on offshore gambling operators, which violated international trade agreements. Antigua fought to ensure its operators were treated fairly on the global stage.
Jay Cohen was instrumental in fighting for the industry. He hired a legal team to draft Antigua’s response to the WTO dispute, and I testified on his behalf. Jay and I remain friends to this day, and his story, along with mine, is now being turned into a book and movie.
Jay Cohen
Jay Cohen, born in 1968, was a pioneer in online sports betting, co-founding World Sports Exchange (WSEX) in 1996. Based in Antigua, WSEX quickly became a popular platform for US customers to place wagers on sports. In 1997, WSEX was licensed in Antigua, where online gambling was legal, but this drew the attention of US regulators.
In 2000, Cohen became the first person convicted under the Wire Act of 1961 for operating an offshore online sportsbook. Despite WSEX’s legal operations in Antigua, the US government prosecuted Cohen, resulting in a 21-month prison sentence. His conviction highlighted the conflict between US domestic laws and international trade agreements governing services.
This legal case inspired attorney Mark Mendel to help Antigua challenge the US at the World Trade Organization (WTO). In 2003, Antigua filed a complaint against the US, arguing its online gambling prohibitions violated international trade rules under the General Agreement on Trade in Services (GATS). In 2004, the WTO ruled in favor of Antigua, but the US refused to comply, leading to ongoing tensions.
Cohen’s case brought attention to the global challenges of regulating cross-border online gambling, shaping future legal and regulatory battles in the industry.
Ian: By 2000, there were over 800 licensees. What led to your resignation?
Gyneth McAllister: By then, we had major operators like William Hill and Cantor Fitzgerald, whom I personally brought from the UK. However, political influences within the government made my task increasingly difficult, particularly as I was working to oust Bill Scott and Bob Eremien who the US proved to have committed crimes unrelated to sport book operation. They were flies in the ointment and required removal. They had by that time made friends in the government and my task was made difficult. I saw the writing on the wall and resigned to protect my reputation.
I took on Las Vegas and made many trips to meetings with gaming regulators to find a path to true comprehensive, sustainable regulation but Las Vegas interests were, and are, powerful. They do not share the market.
Ian: Thank for your answers and I’m looking forward to the book and film!
Legacy and Impact
Gyneth McAllister’s work laid the foundation for Antigua’s role as a pioneer in online gambling regulation. Despite controversies and challenges, her efforts established a regulatory framework that balanced transparency, innovation, and financial integrity. Antigua’s early leadership set a global precedent for the online gambling industry, cementing its place in the history of internet gaming.
Side Note
My old company, Intertops, had already established itself in 1996 as the first online sportsbook. Intertops was then located in Salzburg, Austria and then saw the benefits of moving their online business offshore.
After researching a few likely destinations, Intertops applied for a license to operate an online sportsbook and casino in Antigua in 1997. They were accepted and set up shop at 60, Nevis St. St. John’s and occupied the top two floors.
It was a nice office and we built out own server room. Intertops relocated their online sportsbook from Austria and then they were able to integrate Microgaming casino games into their sportsbook, which was something the could not do in Austria. Intertops’ online business continues in Antigua to this day.
So, thank you to Antigua for the good times. For all of us staff, Antigua soon proved to be a paradise.
