"US Must Meet Deadline to Clarify Net Gambling Rules"

Claiming discriminatory policies on the part of the United States with regard to the Internet gambling industry, back in 2003 the tiny Caribbean nation of Antigua filed a complaint with the World Trade Organization (WTO) against the United States. Antigua alleged essentially, that because of U.S. federal and state laws that prohibited online gambling, the Untied States was in violation of international trade agreements. Antigua argued that it had come to rely heavily on the cross-border gambling and betting industry in its attempts to wean its economy from being entirely based on tourism. It also stated that this industry had become a critical component of Antigua’s economy, and that therefore the U.S. restrictions on the industry were hurting Antigua’s efforts to boost its economy.

The U.S. countered by contending that its policy prohibiting offshore Internet gambling was required in order to uphold public morals, when Antigua first filed the complaint. Ultimately, the WTO ruled that so that they would not be discriminatory, while the U.S. had a right to enforce policies in the interest of public morals, it had to clarify those policies. A United States law known as the Interstate Horseracing Act was of particular concern. Because it in fact permitted domestic out-of-state betting but prohibited International out-of-state betting, according to the World Trade Organization’s ruling, this law was in violation of international rules.

Up until now, the United States has yet to clarify its policy. The World Trade Organization, however, has recently issued a 31-page ruling that says that the deadline for the United States to do so, to comply with the WTO ruling, is April 3 rd of next year. The United States government, then, has less than a year to clarify its rules about offshore Internet gambling, according to the WTO arbitrator. Nina Moorjanig, who is the press secretary for the U.S. Trade Representative, has stated that the U.S. has already announced its intention to comply with the WTO finding. She also remarked that that U.S. intends to continue its ongoing compliance efforts. They see the issue as one in which, according to Moorjanig, all they need to do is clarify one narrow issue concerning Internet gambling on horse-racing.

Moorjanig also points out that any actions that are to be taken by the US will not in any way involve the weakening of U.S. restrictions on Internet gambling. In addition, according to Moorjanig, the United States government is currently considering its options with regard to the clarifications that have been requested by the WTO. The government, according to her, has not yet decided whether that move will come from Congress or not.