Gambling News - August 2005 Edition

"U.S. Given Deadline on Gambling Ban"

Antigua fighting for access to U.S. gambling market.

The U.S. has until April third of 2006 to comply with the WTO’s decision in the hearing brought by Antigua, the small island nation in the Caribbean. The hearing ruled that the U.S. ban on Internet gambling in the interest of public morals can only stand as long as the ban does not create discriminatory policies towards foreign Internet gambling businesses. Antigua had filed a complain with the World Trade Organization against the U.S. because of alleged discriminatory policies against online gambling companies, and is now anxiously waiting for the U.S. to comply with the WTO’s decision handed down on April seventh of this year. The U.S. said, in response to the ruling that it can comply with the WTO’s decision without opening itself up to foreign Internet gambling if it just “clarifies” its restrictions.

"To implement the findings in this dispute, all we need to do is clarify one narrow issue concerning Internet gambling on horse racing," A spokeswoman Rob Portman, the U.S. Trade Representative, said by telephone from Washington on Friday. "This does not involve weakening U.S. restrictions on Internet gambling."

Antigua is anxiously waiting for access to the U.S. gambling market. It developed the online gambling industry after the U.S. suggested that the country should find an alternative industry to boost its economy besides tourism. The U.S. gambling market is the largest one in the world and accounts for approximately 55 percent of all online gambling.

Internet gambling companies registered in Antigua, such as SportingBet Plc and BetWWTS.com, account for about a quarter of the wagers placed in the estimated $7 billion to $12 billion global Internet gambling industry.

Antigua , with a population under 68,000, is the smallest nation ever to lodge a complaint with the World Trade Organization. It was considered a major victory when the WTO ruled in favor of Antigua, saying that the Bush administration had not justified its position against Internet gambling by simply arguing that the ban was for moral reasons. The WTO also ruled that the U.S. had committed itself to opening its market to the online gambling industry in 1995 and must uphold that commitment.

In an interview from his New York office, John Ashe, Antigua’s ambassador to the WTO said, “We hope the U.S. does everything possible to comply with the decision. They certainly have adequate time." According to Ashe, access to the U.S. gambling market, is Antigua’s only goal in this case. While the U.S. did win part of an appeal against the WTO ruling, it still must comply with the ruling.

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