Tuesday, May 22, 2007

Antigua Ruling By WTO Ignored by U.S.




In an act of contempt for the World Trade Organization and Antigua, the U.S. government declined to appeal a decision in a recent WTO online gambling ruling.

This means that Antigua can fast track the Remedy Phase of the ruling. It has been said that Antigua would be able to seek sanctions against the U.S. for its stance on international online gambling involving U.S. players. But the more immediate impact is that other nations can jump on the internet gambling bandwagon as it pertains to the United States.

When the second WTO ruling in favor of Antigua came down on March 30, 2007, the court issued what is called a compliance report. This basically sets down the legal parameters of the case and its remedies. Since the U.S. declined to ask for an appear, this means that all members of the WTO automatically accept the compliance report.

The U.S. will probably go on ignoring the WTO ruling. That doesn't mean that other nations will.

STAND IN LINE TO FILE YOUR COMPLAINT

This latest action on the part of the Bush administration received sharp criticism from several European Union nations and Brazil. As it stands, any of these nations could now press the same claims against the U.S. that Antigua has.

Under the Bush administration, the Justice Department has tried to limit the ability of foreign online casinos from serving U.S. players. The Bush administration took a liberal interpretation of the sixties era Wire Act. The DoJ claimed it had the right to keep online casinos operating out of countries like Antigua from taking U.S. players.

It even made several high profile arrests, such as the Dominican Republic arrest and extradition of BetonSports founder, Gary Kaplan.

Meanwhile, the Bush administration simply ignored the 2005 WTO ruling.

ANTIGUA'S GRIPE

The WTO said that, if the U.S. allows its citizens to bet on horse races online, it cannot discriminate against foreign companies offering similar services. To do is to engage in protectionist trade policies, which is what the WTO exists for. It seems the "free trading" Bush administration isn't so interested in free trade after all.

The U.S. appealed the 2005 ruling in March of '07, claiming that the Unlawful Internet Gambling Enforcement Act passed last fall had clarified the situation. The WTO court claimed it only made the U.S. position even more murky, and ruled against them again.

So the saga continues. It looks like other nations will join Antigua in claiming the U.S. is upholding unfair and illegal trade barriers, so this story might heat up soon.

Antigua Ruling By WTO Ignored by U.S.