“WTO Rules in Online Gambling Dispute”
The long awaited WTO ruling
on Antigua’s case
against the U.S. has finally been delivered and the U.S.
isn’t exactly celebrating. On the other hand, Antigua,
which has argued that U.S. restrictions prohibiting Americans
from playing at online gambling sites are harming Antigua’s
economy and are in violation of the General Agreement
on Trades and Services (GATS), is quite satisfied.
To counter Antigua’s arguments,
the U.S. contends that their restrictions actually
help prevent money laundering and protect vulnerable
members of society. Of course, no one doubts that the
U.S. also has a keen interest in protecting the well-established
gambling industry right on its own shores.
While the U.S. has no federal laws specifically banning
gambling, many states have enacted laws that prohibit
it. Some states, however, do allow gambling and since
casinos are allowed to operate in some places within
the U.S., Antigua was able to effectively argue its point
that offshore gambling sites were not being allowed access
to the same degree of American-based gambling operations.
Still, U.S. officials can’t complain too much since
the WTO did agree with the U.S. assertions that some restrictions
were “necessary to protect public morals or maintain
public order”. In essence, the U.S. may maintain
some of its restrictions on Internet gambling if it agrees
to clarify them in a specific way.
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