WTO Again Sides with Antigua on Online Gambling Issue

ANTIGUA and BARBUDA – As reported by Red Herring: "The odds aren’t great, but some offshore online gambling firms have a punter’s chance of legally returning to the United
Tax revenues from online gambling would be enormous, according to new estimates.  States, thanks to the dogged determination of the tiny, twin-island nation of Antigua and Barbuda.

"The World Trade Organization has reportedly ruled unambiguously in Antigua’s favor in a three-year-old case that country filed against the U.S. for free trade violations.

"The ruling has not been made public yet, but a spokesperson for the U.S. Trade Representative's office has all but confirmed that the decision went against the U.S.

"In 2003 Antigua complained that the U.S. government’s ban on offshore online casinos and sports books violates the General Agreement on Trades in Services (GATS) treaty since it allows the same activities within its borders.

"And since both countries are signatories to GATS, the U.S., if it abides by the spirit of the ruling, should do one of two things: Either open its market to online gambling firms based in Antigua, or shut down the firms running the same kind of operations in the U.S.

"…The U.S. has varied its defense over the years. Initially the Bush Administration said that GATS did not include online gambling. At least that was not the U.S. understanding of the treaty.

"Since then the U.S. has come up with a 'moral' defense. It says online gambling, unlike all the other forms of gambling available in the U.S., does not have adequate protection against minors betting the family house.

"The Antiguan government and the offshore online gambling industry have indeed come up with techniques to weed out minors armed with their parents’ credit cards. But so far that defense has fallen on deaf ears.

"It’s unlikely the U.S. government will reverse its position or its laws banning offshore online gambling. The U.S. is more likely to ignore the ruling and leave the next move to Antigua.

"Antigua could impose sanctions against the U.S. But that would hurt Antigua much more than the U.S. Without additional pressure on the U.S. government, the historic WTO decision is destined to suffer a quiet death.