WTO Rules U.S. Gambling Ban is Illegal
Jack McGoughey
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The World Trade Organization has ruled that the U.S.'s internet betting ban is illegal.
The ruling means that there could be commercial sanctions against the U.S.
In its 215-page decision, a three-member WTO compliance panel sided with the Caribbean island nation of Antigua and Barbuda. The small country has argued that internet gambling is a lucrative s 
ource of revenue and provides hundreds of its citizens an income.
The WTO has said that the U.S. can maintain restrictions on online gambling as long as its laws are equally applied to American operators offering remote betting on horse racing.
"It vindicates all that we have been saying for years about the discriminatory trade practices of the United States in this area, and we look forward to the United States opening its markets," Antiguan Finance Minister Errol Cort said in a statement.
The U.S. won the WTO's first ruling two years ago due to the body recognizing its right to prevent offshore betting as a means of protecting public order and morals. The U.S. said that the new decision is a setback.
"The compliance panel did not agree with the United States that we had taken the necessary steps to comply with the WTO recommendations," said Gretchen Hamel, a spokeswoman for the office of the U.S. Trade Representative. "Nothing in the panel's report undermines the broad, favorable results that the United States obtained from the WTO in April 2005."
The U.S. has not said if they will appeal the findings. A final ruling that upheld Antingua's claims would allow them to seek trade sanctions against the U.S.
To avoid penalties, the United States government would have to either allow Americans to gamble on foreign gambling websites or eliminate the exemptions in place for off-track betting on horses, which includes the internet. The exemption is permitted under the 1978 Interstate Horseracing Act.
It is unlikely that the U.S. will ease access to Antigua companies whose legal efforts were mostly paid for by British-owned internet gambling sites.
The ruling means that there could be commercial sanctions against the U.S.
In its 215-page decision, a three-member WTO compliance panel sided with the Caribbean island nation of Antigua and Barbuda. The small country has argued that internet gambling is a lucrative s
WTO Rules U.S. Gambling Ban is Illegal
The WTO has said that the U.S. can maintain restrictions on online gambling as long as its laws are equally applied to American operators offering remote betting on horse racing.
"It vindicates all that we have been saying for years about the discriminatory trade practices of the United States in this area, and we look forward to the United States opening its markets," Antiguan Finance Minister Errol Cort said in a statement.
The U.S. won the WTO's first ruling two years ago due to the body recognizing its right to prevent offshore betting as a means of protecting public order and morals. The U.S. said that the new decision is a setback.
"The compliance panel did not agree with the United States that we had taken the necessary steps to comply with the WTO recommendations," said Gretchen Hamel, a spokeswoman for the office of the U.S. Trade Representative. "Nothing in the panel's report undermines the broad, favorable results that the United States obtained from the WTO in April 2005."
The U.S. has not said if they will appeal the findings. A final ruling that upheld Antingua's claims would allow them to seek trade sanctions against the U.S.
To avoid penalties, the United States government would have to either allow Americans to gamble on foreign gambling websites or eliminate the exemptions in place for off-track betting on horses, which includes the internet. The exemption is permitted under the 1978 Interstate Horseracing Act.
It is unlikely that the U.S. will ease access to Antigua companies whose legal efforts were mostly paid for by British-owned internet gambling sites.
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Griff
Posted on 04/03/2007 at 3:04:00 AM