WTO Ruling Goes Against The United States
Published: Thursday, April 07, 2005 Online-Casinos.com
WTO RULING GOES AGAINST THE UNITED STATES
By Steven Downes, Times Online
A
landmark ruling from the World Trade Organisation today has opened the way for
Americans to gamble online legally, paving the way for potentially massive growth
among off-shore "virtual" casinos around the globe.
The WTO
today issued its long-awaited ruling in the trade dispute between Antigua, one
of its smallest members, and the United States, its largest member, over cross-border
online gambling.
It marks the end of a near-eight-year battle by the tiny
Caribbean island for the right to host online gambling.
The United States
had contended that internet gambling should be prohibited because it violates
some state laws.
Last year, a WTO report confirmed a preliminary ruling,
saying the US ban represented an unfair trade barrier. Washington appealed the
ruling and said it would "vigorously" contest the ruling before the
WTO's seven-member appeals body.
But the WTO's ruling today again favoured
Antigua.
The WTO ruling is anticipated to pave the way for new media opportunities
for gaming operators in Antigua and many other smaller counties. Previously US
companies such as Citibank, Chase Manhattan, Bank of America, Clear Channel Communication,
Discovery TV, Yahoo and MSN were discouraged from accepting media buys from online
gaming products. The WTO determination is expected to end subpoenas or threats
of prosecution from the US Justice Department to American companies who choose
to do business with Antigua offshore gaming companies.
"This is a
country-specific ruling, but it may have far-reaching implications," Mark
Mendel, the lead counsel for Antigua, said.
In a classic David and Goliath
story, the mighty US was pitted against Antigua, with a population of only 68,000
and which cannot even afford to keep a representative at the WTO's headquarters
in Geneva.
But Antigua managed to hold its own against the world's largest
economy, which is also the world's largest gambling market.
Antigua filed
the case before the WTO in 2003, contending that US restrictions on internet gambling
violated trade commitments the United States made as a member of the 148-nation
WTO.
According to a 1991 list of industries that must be open to free
trade, the recreation and entertainment sectors are fair game, the island state
claimed. Moreover, Sir Ronald Sanders, Antigua's chief foreign affairs representative,
and others have argued that it was no less than the Washington-based World Bank
that advised Antigua to move into internet industries to diversify its fragile,
tourism-based economy. Antiguan officials estimate that online casinos employ
some 3,000.
