"An Update of Gambling Law"

After the World Trade Organization’s (WTO) gave its ruling with regard to the case brought against the United States by the nations of Antigua and Barbados the case went to the appellate body of the WTO for clarification which resulted in an additional ruling. Subsequent to the release of the appellate body’s ruling, however, there are still unanswered questions regarding U.S policies on online gambling. The main issue is the U.S. claim that the United States Government has the right and duty to prohibit online gambling so as to protect public morals. In their attempt to control online gambling, U.S. Federal law enforcement agencies have applied the 1961 Wire Communications Act when prosecuting online gambling operators. They claim that the Act, which was originally written to prevent sports betting by telephone, was and is necessary for the protection of public morals and for the maintenance of the public order. While it is true that the 138-page report that was issued by the appeals panel seems to side with the U.S argument, the fact that no evidence was submitted to the World Trade Organization’s court that indicates that online gambling in actuality interferes with public morals or impacts the public order, the World Trade Organization must therefore issue yet another clarifying statement within the scope of their ruling. This statement is due to be issued by next month and is destined to have a significant impact on the online gambling industry as a whole since it will touch on the heart of the U.S. Government’s contention that they have the and the right and the obligation to regulate international gambling transactions within their jurisdiction.

Meanwhile, the WTO’s ruling continues to permit the United States government to prohibit online gambling when it is directed at U.S. residents. They may do this without the fear of being in violation of any international trade agreements. Thus, though it is true that both the island state of Antigua as well as the United States have claimed a victory with regard to this ruling, it is solely the United States so far, that appears to be a clear winner.