"Did anyone Really Win in the Recent WTO Gambling Decision?"

There are many who hold an interest in the recent WTO ruling regarding whether or not the U.S. ban on Internet gambling represents a violation of free trade agreements, who are not sure exactly which side has been favored by the ruling. It was originally, the small island nations of Antigua and Barbuda that had claimed that the United States ban on Internet gambling was inconsistent and discriminating against foreign operators. To support this claim, lawyers representing the two nations have pointed out that there are states in which online horse race betting is allowed so long as Internet operators of the site have the authorization of American states. They also argued that land-based gambling at brick and mortar casinos is legal in some American states. This they claimed represents a double standard, which effectively acts to prevent foreign online casino operators from having access to U.S. gamblers. On the other hand, the United States has argued that it must have the right to ban Internet gambling and that it is obligated to do so in order to protect the public order and public morals.

The confusion results from the fact that the WTO has ruled that both sides are apparently in the right. On the one hand, it states it agreement with the United States’ argument that it needs to protect the public morals and order, while on the other hand, it supports the Antigua and Barbuda’s claim that the polices of the United States regarding online gambling violate free trade practices. This has led to claims of victory by both sides.

In all likelihood the ruling will have little affect on the online gambling industry, since the United States will probably continue to ban Internet gambling, finding ways to evade the WTO ruling while offshore operators will persist in profiting from American players who now account for approximately half of the current $10 billion in annual revenues.

Though the existing United States law states that it is illegal for American citizens to either play or to operate Internet gambling sites, for a multiplicity of reasons, the law is practically impossible to impose. In addition, numerous states that permit land-based brick and mortar casino gambling are also in favor of allowing online gambling as well. Furthermore, some experts argue that it is more sensible for the United States government to allow American companies to compete against foreign Internet gambling firms while at the same time regulating the industry and taxing its revenues. Australia is already doing this while England will have to do it. It make sense that the United States will soon be required to approve similar policies.