Monday, February 05, 2007

The World Trade Organisation (WTO) has ruled against the US in an online
gambling dispute with the Caribbean island of Antigua and Barbuda. The US is
breaking international trade rules, it is expected to say. Though the ruling
is still private, Reuters has reported that the WTO has found the US guilty
of not complying with a 2005 order in the case. Antigua and Barbuda has
built up a significant internet gambling industry to replace falling tourist
revenue and took the US to the WTO over entry to the US gaming market. Laws
passed previously banned non-US companies from operating in the US gaming
market. Antigua argued that this was an illegal trade restriction and broke
a free trade pact that the US had signed. A WTO dispute resolution panel
found in Antigua's favour in 2003. The US appealed but the Appeals Board
found largely for Antigua in 2005. The WTO has now found that the US has not
tried hard enough to stick to that decision.
Antigua had taken a case relating to a ban on all bets placed across state
lines. The WTO, though, only ruled in its favour in relation to the narrower
issue of horse race betting across state lines. It found that foreign
bookmakers seemed to suffer discrimination. The WTO has provided both sides
with a preliminary report on its findings. Both parties can submit further
comments to it before a final report is published in March. A spokesperson
for the US Trade Representative told Reuters that the ruling was only a
minor issue. "[We] did not agree with the United States that we had taken
the necessary steps to comply with that ruling," she said. "The panel's
findings issued today involve a narrow issue of federal law." Since the
disputed laws were passed in the US further, more stringent anti-online
gambling legislation has been passed. Last autumn, the US passed laws which
made almost all internet gambling illegal in the US and several online
gambling executives have been held by US authorities.