The World Trade Organization has ruled that some US legislation discriminates against foreign operators but that it may keep some restrictions on Internet gambling to protect public morals or maintain public order. The result of the ruling, which partially reverses the decision handed down last November, has allowed both sides to claim victory.

Antigua believes that the April 7 ruling will make the US rethink its online gaming policy, and that US companies such as banks and search engines will be required to accept advertising from Antiguan Internet gaming sites, just as they do now with US lotteries and casinos. This belief is somewhat strengthened by the WTO pronouncement that some US federal laws barring offshore wagers are inconsistent with global trade rules. However, the US trade office has already stated that it will not ask Congress to weaken restrictions on Internet gaming.

The jurisdiction of Antigua licences 37 casinos that provide an income of nearly $68 million for the tiny island nation of Antigua and Barbuda. Worldwide the amount wagered online in 2004 is estimated to be $7.5 billion and the market is showing rapid growth. US policy prohibiting online gaming shows little sign of stopping around 4.5 million Americans from gambling on the Internet, and the actual legal status of US laws is in dispute within the country.

Whatever the outcome of the WTO ruling, it is hard to see the US changing its ways and allowing Antigua access to the US market, even if Antigua had won on every point. As it stands, with both sides claiming victory, the status quo seems to have been upheld whilst the US may, or may not, do something to clarify its federal gambling laws to make them more equitable.
(E-04.08.05)

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