“WTO May Rule Against US in Online Gambling Case”

In a bid to diversify its economy and attract more foreign currency, the tiny island nation of Antigua has been focusing its efforts on developing its e-commerce industry and, in particular, the online gambling industry.

Antigua, traditionally reliant on the tourism trade for its economy, has suffered significantly since a series of hurricanes in the region in the 1990 scared away tourists from visiting. The government of Antigua is hoping that the online gambling business is the answer to their economic woes. Estimates indicate that online gambling sites could create at least 3000 additional jobs for the residents of Antigua. One large and very powerful obstacle lies in the way, however, and it’s coming from the U.S. The U.S. has banned Internet gambling asserting that it violates some U.S. state laws that prohibit gambling (even though there are no federal laws that prohibit gambling). Also, the U.S. has been using the 1961 Wire Communications Act to prosecute gaming site operators. This is hard to enforce, however, since virtually all of the sites are based in nations where Internet gambling is not illegal.

Nonetheless, the ban does hurt tiny nations like Antigua who are placing high hopes on the industry’s ability to help out their economy. Antigua responded to the ban in 2003 by filing a case with the WTO. Government representatives of Antigua argued that the U.S. restrictions violated U.S. trade agreements with the WTO. Antiguan officials also argued that by banning U.S. citizens from playing on Antigua’s gambling sites, Antigua’s efforts to diversify and, therefore, strengthen, their economy were being obstructed.