WTO Announces Deadline For USA Compliance
Published: Friday, August 26, 2005 Online-Casinos.com
WTO ANNOUNCES DEADLINE FOR USA COMPLIANCE
April 2006 is the final date
Associated Press reported this week that the United States has until April 2006 to comply with a WTO ruling on US restrictions on cross-border gaming on the Internet.
Quoting a World Trade Organisation official announcement on the issue, which has been running since March 2003 the report reveals that the global trade referee is allowing Washington enough time to adapt its legislation to comply with its ruling, which was issued in April, 2005.
At the conclusion of the WTO-arbitrated dispute, the US was given a "reasonable period of time" for Washington to adapt its legislation in line with the ruling, which was issued in April this year after the island state of Antigua and Barbuda brought the US before the 148-nation WTO.
Antigua argued in its complaint that US prohibitions were harming its online gaming business, which is aimed at reducing the island's economic dependence on tourism. The island, with a population of about 68,000, is a centre for offshore Internet gaming operations, attracting large numbers of US residents to its virtual casino-style games and betting services.
US officials contended Internet gambling is illegal if it involves activity on US soil, and have vowed to prosecute those involved in the practice.
Both sides claimed victory in the dispute.
In its ruling, the WTO accepted that prohibitions in some US states on cross-border gaming were valid and agreed with Washington's argument that some federal laws could "protect public morals or maintain public order."
However, the appeals panel ruled that the United States had not been able to show that US laws on horse-racing bets were applied equitably to foreign and domestic online betting suppliers, a key condition of global trade rules.
Antigua has said it expects changes in US rules to unlock opportunities to advertise online gaming products on US Internet sites or media without the threat of legal action by authorities. There have thus far been no prosecutions against advertising media despite widespread "advisories" from the US Department of Justice, which is itself embroiled in litigation with Casino City on the issue.
Trade partners who fail to implement WTO rulings often find themselves hit by sanctions, usually in the form of extra tariffs on their exports.
