The ruling followed a complaint to the WTO in 2003 by the tiny
Caribbean state of Antigua and Barbuda. The state argued that US
prohibitions against internet gambling were discriminatory and in
breach of international trade agreements that require the US to
allow foreign internet companies to offer their services to US
citizens.
In its defence, the US argued that the restrictions it has in
place do not breach the trade agreements, which allow exceptions
for moral reasons. The US said its restrictions are necessary
because gambling on the internet is different from casino-based
gambling, not least because of the difficulty in preventing
children from accessing the services.
It also pointed out that when the WTO was set up in 1995,
gambling services were excluded from its remit.
But these arguments were rejected in a preliminary ruling by the
WTO in March 2004 and then again in its final report in May 2004,
which found that the US was in breach of the WTO rules.
The US appealed and, in a ruling issued in April this year, the
WTO ruled that the US could maintain certain restrictions on
internet gambling, but its laws must change because they currently
discriminate against foreign operators.
These changes must now be introduced by 3rd April 2006.
Speaking to Reuters, Neena Moorjani, press secretary for the US
Trade Representative’s (USTR’s) Office, said:
"USTR will not ask Congress to weaken US
restrictions on internet gambling. We had asked for 15 months to
comply as it was our reasonable and realistic estimate of the
necessary amount of time. But we are studying the arbitrator's
award and will do our utmost to comply."
