WTO says US gambling rules discriminatory in some cases - update 2

04/11/05 - newratings.com

NEW YORK, April 11 (newratings.com) – A World Trade Organization (WTO) appeals panel Thursday ruled that although the United States can continue with its restrictions on internet gambling, some of the rules imposed by the country were discriminatory to foreign operators. Both Antigua and the US claimed victory in the dispute.

The Caribbean twin island state had approached the WTO in 2003 contending that the US restrictions on internet gambling violated the trade commitments made by the latter to the WTO. Antiguan officials also argued that restrictions barring US citizens from betting at offshore casinos were harming Antigua’s electronic trade. While US officials said that the ruling called for a simple clarification on a minor issue of horse trading, Antiguan officials said the ruling called for the US authorities to treat Antiguan online casinos at par with the traditional gaming outlets. The WTO panel's decision is final and no further appeal allowed. It is widely believed that the two sides would now hold negotiations, wherein the US will amend its horse racing act in accordance with the WTO guidelines and allow international bets on horse races placed through casinos in places like Antigua. Associated Press quoted the legal counsel for Antigua as saying that the WTO’s decision should bring an end to the US authorities threatening to subpoena or prosecute American companies that do business with Antigua offshore gaming businesses.