"Betting Against the Odds"
For those involved in the online
gambling industry, the outcome of the U.S. appeal of
the World Trade Organization’s
ruling, regarding the tiny island of Antigua and its right
to make online gambling available to U.S. citizens, is
of major importance. With a population of only 68,000 people,
the tiny Caribbean nation seems to be standing strong against
the U.S. in this international battle over the Internet
gambling industry.
The Government of Antigua is arguing that the U.S. is
illegally preventing online gambling sites based in Antigua
from accessing U.S. consumers while, at the same time,
allowing gambling, and in some cases Internet gambling,
within the U.S. This, according to lawyers for Antigua,
is clearly in violation of fair trade practices as it discriminates
against foreign companies. Furthermore, Antigua argues,
that it was the Washington based World Bank itself that
encouraged Antigua to become more involved in Internet
industries as a way of boosting and diversifying its less
than robust economy.
In response, the United States
is taking a moral stand by arguing that Internet gambling
is inherently a greater moral danger than conventional
forms of gambling. The U.S. also cited the WTO’s
own 1995 General Agreement on Trade in Services landmark
ruling which enforces the right to prevent offshore gambling.
To counter the U.S. moral contention, Antigua is arguing
that the U.S. does not have the moral high ground since
it permits gambling on its shores in many locations. In
fact, legal gambling can be found in small rural towns,
on Indian reservations, in several large cities, and lottery
tickets can be purchased legally over the Internet in Las
Vegas.
Furthermore, military bases operate their own casinos
even if local laws prohibit gambling. The military, some
argue, is one of the worst places to allow gambling since
the nature of the military environment could encourage
gambling addictions.
One person acutely aware of the
fight between the U.S. and Antigua is Jay Cohen, the
owner of a successful online gambling site based in Antigua.
Cohen was recently arrested and convicted for allowing
Americans to bet online, which is in violation of the
U.S. Wire Act. After serving 17 months in jail for the
white-collar crime, Cohen is eagerly awaiting the WTO’s
ruling on the U.S. appeal and anticipating his own moral
victory.
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