Gambling News - May 2005 Edition

"Gambling Law Update"

United States claims victory in the case against Antigua and Barbados - "We are the only clear winner."

Following on the World Trade Organization’s (WTO) ruling on the case brought against the United States by the nations of Antigua and Barbados, clarifications were necessary and the case was sent to the appellate body of the WTO for an additional ruling. Now, after the release of the appellate body’s ruling, there are still unanswered questions regarding U.S policies on online gambling. The main issue is the claim by the U.S. government that in order to protect public morals they have the right to prohibit online gambling

U.S. Federal law enforcement agencies applied the 1961 Wire Communications Act when prosecuting online gambling operators, 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 agrees with the U.S. claim but, as no evidence was submitted to the WTO indicating that online gambling actually does interfere with public morals or affect public order, the WTO now has to issue another clarifying statement on their ruling. This statement should be issued soon and will have a significant impact on the online gambling industry, as it will refer directly to the U.S. Government’s claim that they have the right to regulate international gambling transactions.

The U.S. will continue to prohibit online gambling in terms of the WTO ruling and is not concerned that it may be violating any international trade agreements. Antigua and the United States are both claiming victory in the ruling, but the only clear winner, so far, is the U.S.

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