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Online Gambling Ban may Result in US Sanctions - 04-02-07

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April 2 - A recent ruling made by the World Trade Organization (WTO) may result in commercial sanctions against the United States for failing to comply with a previous ruling to alter its online gambling ban that is unfairly affecting offshore online casinos.

Based in Geneva, Switzerland, the WTO released a 215-page ruling that supports the Caribbean island of Antigua and Barbuda which relies heavily on online gambling for much of its revenue as well as job provision for hundreds of islanders.

The WTO said that Washington is free to maintain its online gambling restrictions just as long as it amends its laws to apply equally to US operators offering remote horse race betting, which currently it does not.

A US Trade Representative spokesperson acknowledged that 'the WTO ruling was a setback'.

Said Antiguan Finance Minister Errol Cort in response to the ruling, 'The WTO ruling vindicates everything we have been saying for years about the discriminatory trade practices exercised by the US in this area, and we look forward to its opening its markets.'

However, it is unlikely that the US will ease access to companies with servers licensed in Antigua and Barbuda, a nation whose legal efforts were backed mainly by British online gambling operators.

The US has still not said if it will appeal the recent WTO ruling. However, if a final ruling is made to uphold Antigua's claims, the island nation will be free to seek trade sanctions against the US for non-compliance.

In that case, to avoid the penalties, the US government would either have to permit Americans to gamble online at offshore-based websites, or eliminate exceptions for off-track betting on horses, including over the Internet, that is permitted under the United States 1978 Interstate Horseracing Act.

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8/29/2008 9:05:49 AM
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