US Defying WTO Ruling in Internet Gambling Case

According to the Antiguan government, there is a major hole in the U.S. position on internet gambling. The government tolerates Internet betting on horse races and, in some states, lotteries and other games. Numerous U.S. sites let users wager on races from the New Jersey Meadowlands to the Louisiana Downs.

This was blatant hypocrisy, the Antiguans claimed, contending that the U.S. position violated a trade principle called "national treatment." The principle essentially requires a government to treat foreign goods and services the same as domestic ones. To outlaw wine imports, a Muslim country must ban domestic brewing, too.

Likewise, the Antiguans contended, the United States can bar citizens from using overseas gambling sites only if it bans domestic sites. WTO judges bought that argument. Antigua won a slam-dunk ruling in 2004, and though an appeals panel scaled it back, Washington was still in a tough spot. The final ruling essentially said that the United States must outlaw all forms of online gambling, including on horse racing, or Antigua wins.

The Bush administration first vowed to secure legislation "clarifying" that all forms of online betting are illegal. But the horse racing industry has blocked such efforts on Capitol Hill.

Next, the administration cited testimony by the Justice Department in April claiming that all Internet wagering across state lines, including that on horses, violates existing laws. That was news to the horse racing industry, and it seems to have had little effect. Even so, the administration has pointed to the statement as evidence that the United States treats all online gambling the same.

Scoffing, the Antiguans are asking the WTO to declare that Washington is defying its ruling. Many experts expect Antigua to win again, after months of delay.

August 5, 2006
Posted By Tom Jones
Staff Editor, CasinoGamblingWeb.com    Previous Page | Internet Gambling | Top Online Casinos | Submit News!