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"WTO May Rule Against US in Online Gambling Case"

Antigua is trying hard to replace its hurricane battered tourism industry with its online gambling industry.

The tiny island nation of Antigua, who are reliant to a large extent on the tourist trade for its economy, has suffered significantly since it was battered by a series of hurricanes in 1990 which scared away the tourists. The tourists have found other holiday places and have who have not returned.

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

The government of Antigua is hoping that the online gambling business may be the answer to their economic problems. Estimates indicate that online gambling sites could create at least 3,000 jobs for the Antiguans. However, a large and very powerful obstacle which emanates from the U.S. lies in the way. Internet gambling is illegal in the U.S. because it is thought to violate the old 1961 Wire Communications Act which prohibits the use of the telephone wires for the transmission of bets, even though there are no federal laws that directly prohibit gambling. The Wire Communications Act is hard to enforce, however, since virtually all of the sites are based in nations where Internet gambling is not illegal. So far, only one American has been prosecuted under this law.

But the American ban on gambling affects tiny nations like Antigua who place high hopes on the gambling industry’s ability to help their economy. Antigua responded to the U.S. ban by filing a case in 2003 with the World Trade Organization. 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 strengthen their economy were being obstructed.

The WTO confirmed that the case had been filed. This Thursday the WTO is set to rule on whether the U.S. is indeed in violation of its trade agreements. If the WTO rules in favor of Antigua, the U.S. may have to rethink its position on prohibiting Americans from gambling in online casinos.

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