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“Betting Against the Odds”

U.S. says, "Internet gambling greater moral danger than conventional gambling

The result of the U.S. appeal of the World Trade Organization’s ruling regarding the tiny island of Antigua and its attempts to make online gambling available to U.S. citizens, is of cardinal importance to those involved in the online gambling industry. The tiny Caribbean nation with a population of 68,000 people is seen to be taking a strong stand against the mighty U.S. in this seminal battle over the Internet gambling industry.

The Government of Antigua argues that the U.S. is illegally preventing online gambling sites based in Antigua from accessing U.S. consumers while, at the same time, allowing gambling, and in some cases, even Internet gambling within the U.S. This, they say, is clearly a violation of fair trade practices as it discriminates against foreign companies, according to the lawyers acting for Antigua. Moreover, argues Antigua, it was the Washington based World Bank itself that encouraged Antigua to become more involved in Internet industries as a way of boosting and expanding its rather slack economy.

The U.S. also cites the WTO’s own 1995 General Agreement on Trade in Services landmark ruling, which enforces the right to prevent offshore gambling. The United States also takes a moral stand by arguing that Internet gambling is inherently a greater moral danger than conventional forms of gambling because of its easy availability.

To counter the U.S. moral contention, Antigua argues that the U.S. does not have the moral high ground since it permits gambling in many locations on its shores. In fact, legal gambling can be found in small rural towns, in several large cities, on Indian reservations and lottery tickets can even be purchased legally over the Internet in Las Vegas. Furthermore, military bases maintain and operate their own casinos even if local laws prohibit gambling. The military, some argue, is one of the worst places to allow gambling since the nature of the military environment could encourage gambling addictions.

One person anxiously watching the argument between the U.S. and Antigua is Jay Cohen, the owner of an online gambling site based in Antigua. Cohen was arrested and convicted for allowing Americans to bet online, a crime which is in violation of the U.S. Wire Act. After serving 17 months in jail for the white-collar crime, Cohen is eagerly awaiting the WTO’s ruling on the U.S. appeal and anticipating his own moral victory.

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