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“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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