US vs Antigua: WTO ruling on Internet gambling

WTO rules on U.S. online gambling

The World Trade Organization (WTO) said the United States can keep somerestrictions on Internet gambling to maintain "public order" and"public morals". It also concluded that some U.S. legislationdiscriminates against foreign operators.The final ruling requires that the United States should allow offshorecasinos to accept U.S. wagers via the Internet. Peter Allgeier, actingU.S. trade representative, said that it is essential to "clarify U.S.Internet gambling restrictions in certain ways".Antigua and Barbuda, the tiny Caribbean nation that filed the case,demands that Washington should drop prohibitions on Americans placingbets in online casinos.The WTO appeals panel ruled that American laws discriminate againstforeign commerce. The panel asserted authority over regulation ofgambling services, and said some federal laws barring wagers throughoffshore betting parlors are "inconsistent" with global trade rules.The U.S. also violated trade rules by not applying its lawsconsistently to foreign and domestic companies.Washington will now "have to provide Antiguan online gaming companieswith fair access to the U.S. market, said Mark Mendel, Antigua's leadlegal counsel in the case. Mark Mendel said the WTO ruling means USauthorities will have to treat Antiguan online casinos in the same wayas traditional gambling outlets. He indicated, that although theruling relates only to Antigua, the precedent may have far-reachingimplications.Antigua filed the case before the WTO in 2003, contending that U.S.restrictions on Internet gambling violated trade commitments theUnited States made as a member of the 148-nation WTO. Antiguanauthorities also argued that restrictions barring U.S. residents frombetting at offshore casinos were harming their country's efforts todiversify its tourism-driven economy with Internet gambling industry.There are 37 licensed casinos employing 1,300 and generating nearly$68 million in income on the islands, said Ron Maginley, spokesman forthe Antiguan Offshore Gaming Association."This is a very important day for Antigua and Barbuda and we are allvery pleased in respect of the ruling," Antigua's Finance MinisterErrol Cort said. "It means that once we have worked out the modalitieswith the USA, we will be able to access the U.S. market."