By Samantha Williams
In the legality muddle of online gambling the battle is going on and on tirelessly between the governments and online gambling sites. The tussle between the interested parties belonging to national levels centers mainly on one thing. Is it justified to ban the online gambling transactions, while more than 54 nations have legalized the same world-wide. On moral or ethical grounds can any government authority curb the individual right of the online gambling game players? This is the million dollar question….nay trillion dollar question to be resolved once and for all. As for the U.S. restrictions on offshore operations of online gambling is concerned, it all started just 4 years back in 2003 when the two Caribbean nations of Antigua and Barbuda filed a petition before the World Trade Organization, opposing the arbitrary ban imposed by the U.S. laws, curtailing the offshore operations of online gambling sites. These two nations had much in stake to lose by the ban of the mighty U.S. by intervening into their business. Online gambling was the cash cow for revenue for these tiny island nations and they can’t afford to forfeit the income just because a powerful neighbor objects to it. Early in the 1990s there were nearly 100 sites engaged in online gambling business, employing around 5000 employees. It was a major part of their economy and arising out of the imposition of U.S. ban, it dwindled gradually to less than 40 companies in 2003 and these nations cited these points in support of their petition before the WTO. They submitted that they are ensuring strict vigilance on online gambling operations and that there is no need for interfering with the operations, inasmuch as it amounted to violation of commitments made by any country towards cross-border services. Thereupon WTO appointed a three member panel to go into the matter and to decide whether the U.S. crackdown amounts to violations of justified international trade practices. The U.S. law enforcing officials submitted a counter stating that online gambling does not come under the purview of their commitments to such trade practices; that there is large scope of money laundering through online gambling operations; and that allowing online gambling would create serious social problems in the society with dangers of psychological problems to a segment thereof. After detailed deliberations and hearing the views of both the parties concerned, the panel of WTO gave its ruling in December 2007 that U.S. crackdown amounts to violation of the accepted norms for world trade practices within countries and awarded a compensation of US$21 million per year to Antigua and Barbuda. Not satisfied with the amount of compensation awarded, the two island nations are making further efforts for striking a deal with U.S. authorities at the highest level. With this objective, a high level delegation headed by Dr. Cort, Minister of Finance and Economy has started a meeting with the U.S. Ambassador for Trade Representations. Dr. Cort stated that while they are satisfied with the ruling of the WTO Panel in awarding compensation, the quantum is insufficient – when compared to their original claim of US$ 304 million. Also restricting the compensation to only horse racing which is just 10% of the online gambling operations, according to Dr. Cort, is disappointing. The outcome of this high level summit is eagerly awaited by relevant circles of online gambling industry.