"The Recent WTO Ruling on Offshore Gambling Leaves No Clear Winner"

The results of the long awaited WTO appellate court ruling of last Thursday, with regard to the legitimacy of U.S. polices in connection with offshore gambling, appear to favor neither the United States nor the plaintiffs, Antigua and Barbuda. Neither side seems to be in the position to claim either a victory or a loss. Those who have read the verdict seem to agree that both parts benefit and suffer from the ruling.

The original WTO decision was appealed by the U.S. They argued that U.S. government restrictions on online gambling are necessary so as to sustain public morality and order. The agreement supported Antigua and Barbudas’ argument that U.S. restrictions against offshore gambling are in violation of international trade agreements to which the United States is a signatory.

In the appellate ruling, however, the WTO while still in agreement with its original findings, has now added that the U.S. maintains a legitimate reason to be concerned in connection with the social problems that are associated with gambling. In fact, the appellate ruling does allow the U.S. to maintain the majority of its existing online gambling restrictions. It seems that the United States government has been allowed to mention enough of the restrictions that the U.S. Trade Representative does not feel that it s necessary to ask Congress to lighten up its restrictions on the online gambling. Therefore in the United States the appellate decision is seen as affirming United States polices.

The WTO’s finding that U.S. policies are discriminatory are not to be disregarded. This is because ultimately they more easily give their country’s citizens access to domestic gambling services than to offshore online gambling services. It is the argument therefore of Antigua and Barbuda that this ruling states that U.S. policies are in fact in violation of the free trade agreements to which the United States is a signatory. Such agreements it is argued, obligate the United States to permit offshore gambling. As one attorney who is arguing the Antigua case puts it, the ruling in fact now permits U.S. companies to do business with Antigua-based online gambling companies free from fear of being prosecuted by U.S. legal authorities.