Jay Cohen, previously a sportsbook operator and jailed for operating an online gambling site outlawed under U.S. federal law, may be behind the Bush administration’s ongoing troubles at the WTO. According to an article in the Washington Post, Cohen originally encouraged the tiny Caribbean nation of Antigua and Barbuda to take its case to the WTO after he learned that illegalizing online betting and gambling could contravene global trade rules.

U.S. authorities jailed Cohen in 2002 for his role in the operation of an illegal sportsbook in the Caribbean. While imprisoned, Cohen assisted representatives of Antigua’s government to formulate a complaint against the U.S. government’s heavy handed tactics to the WTO. “It kind of helped keep my spirits up,” Cohen admitted.

While the U.S. seemingly had a strong defense against the charges brought by Antigua, the ongoing case has proved embarrassing and a thorn in the side for the Bush administration. Originally stating that “gambling in general and the remote supply of gambling in particular raises grave law enforcement and consumer protection concerns,” the U.S. has had to revisit its position several times given its tolerant attitude toward online horse betting.

According to Antigua, which gains a healthy part of its revenue from online gambling, the American position is hypocritical. Internet betting on horse racing events, along with state lotteries and other games, is commonplace in the U.S. The position is therefore in violation of trade agreements. Antigua also pointed out that U.S. Congress has failed to ban domestic sites, showing favoritism to U.S. interests.

In 2004, the WTO ruled in favor of Antigua. A subsequent appeal by the U.S. stated that the government must outlaw all types of online gambling including horse betting for it to comply to the ruling. If the U.S. government refuses, it will be in breach of WTO regulations.

While the case is ongoing, many industry experts are predicting that Antigua will emerge victorious and the U.S. will be forced to drastically rethink its policies toward offshore online gambling. If so, Antigua’s government will have one man to thank for his efforts – Jay Cohen.

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