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"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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