When the initial World Trade Organization’s (WTO) ruling on the case brought against the United States by the nations of Antigua and Barbados required clarification, the case went to the appellate body of the WTO for an additional ruling. Even after the release of the appellate body’s ruling, however, unanswered questions regarding U.S policies on online gambling still remain. At issue is the U.S. claim that the U.S. has the right to prohibit online gambling in order to protect public morals. When prosecuting online gambling operators, U.S. Federal law enforcement agencies have applied the 1961 Wire Communications Act, claiming that the Act, which was written to cover sports betting by telephone, “was necessary to protect public morals and maintain public order”. The 138-page report issued by the appeals panel sides with the U.S. claim but, because no evidence was submitted to the WTO indicating that online gambling does actually interfere with public morals or impact public order, the WTO must issue another clarifying statement on the scope of their ruling. The statement should be issued by next month and will have a significant impact on the online gambling industry, as it goes to the heart of the U.S. Government’s argument that they have the right to regulate international gambling transactions.

In the meantime, the WTO’s ruling continues to allow the U.S. to prohibit online gambling directed at U.S. residents without fear of violating any international trade agreements. Thus, while both Antigua and the United States have claimed a victory in the ruling, the U.S. is, so far, the only clear winner.