The case was brought against the US by the tiny Caribbean nation
of Antigua and Barbuda, which said that a US ban on internet
gambling was in breach of world trade rules. Both sides claimed
victory last night.
The WTO upheld its finding that "a prohibition on the remote
supply of gambling and betting services" breaches provisions of the
General Agreement on Trade in Services, or GATS. It concluded its
146-page report by recommending that the US amend certain laws
found to be inconsistent with the GATS.
Peter F Allgeier, the acting US trade representative, said all
the US had to do was "clarify" certain internet gambling
restrictions to meet WTO rules, insisting that the country can
still prevent Antiguan internet gambling companies from operating
in the US.
But Mark Mendel, legal counsel for Antigua, insisted that his
side won, saying the US will have to treat Antiguan internet
casinos in the same way as traditional casinos and that Antiguan
companies must have fair access to the US market.
Antigua and Barbuda has less than 67,000 citizens, but 3,000 of
them are employed in the on-line gambling industry, according to
local reports. It took legal action in 2003 because its economy was
hit hard by the moralistic stance of the US.