The World Trade Organisation has ruled that the US approach to
internet gambling is in breach of world trade rules. The tiny
Caribbean state of Antigua complained that the moralistic stance of
the US was seriously damaging its economy.
The World Trade Organisation has ruled that the hard line taken by
the US on internet gambling is in breach of world trade rules. The
tiny Caribbean state of Antigua had complained that the moralistic
stance of the US was seriously damaging its economy.
The decision, which is only a preliminary ruling, came after
Antigua and Barbuda complained to the WTO last year that US
prohibitions against internet gambling are discriminatory and in
breach of international trade agreements that require the US to
allow foreign internet companies to offer their services to US
citizens.
Antigua and Barbuda, with a population of less than 70,000, has
an economy largely dependent on tourism, but with a growing market
in internet gambling. According to a report on Caribbean Net
News.com, the country has lost around US$30 million since the US
began its attempts to restrict Americans' access to on-line
gambling services.
Running an internet gambling operation is generally illegal in
the US, whether it is based within the country or off-shore. In
practice, however, it is difficult for enforcement officials to
prevent US citizens accessing off-shore internet sites, and the
industry is therefore growing.
US criminal law applies to companies operating out of the
Caribbean, but it is often difficult to physically get the accused
into court to adjudicate the matter. The most commonly used
legislation to control internet gambling is the Wire Communications
Act of 1961, albeit intended to prevent gambling over the
telephone.
The most recent attempts to prevent US citizens gambling on-line
focus on methods of paying for the gambling services. Bills to ban
the use of credit cards or any other form of electronic payment for
off-shore internet gambling sites are going through the Senate and
House of Representatives at the moment.
One such bill was passed by the House of Representatives in
October 2002, only to fall in the Senate less than three weeks
later. In practice, many credit card companies refuse to process
gambling transactions, but this is on a voluntary basis.
The Bush administration looks set to appeal the Antigua
decision, according to Associated Press, and will argue that when
the WTO was set up in 1995, gambling services were excluded from
its remit.
A final ruling is not expected until May.
