Gaming Guru

WTO rules against U.S. in Internet gambling case

The World Trade Organization ruled in favor of Antigua and Barbuda in its complaint against the United States in an Internet gambling case today. The ruling rejects a U.S. appeal of an earlier ruling in Antigua and Barbuda's favor.

Antigua and Barbuda initiated the dispute in 2003, asserting the U.S. was restricting the cross-border supply of gambling services. The WTO ruled in 2005 that the U.S. was violating international trade law by allowing U.S. residents to make online bets on horse races and lotteries while banning bets to offshore gambling companies.

Following a ruling in Antigua and Barbuda's favor in April, 2005, the U.S. was asked to clarify the legal status of lotteries and betting on horse racing in the U.S. Today's ruling confirms that the U.S. has not taken sufficient measures to address the WTO's 2005 ruling.

"It vindicates all that we have been saying for years about the discriminatory trade practices of the US in this area, and we look forward to the US opening its markets," said Antiguan Finance Minister Errol Cort in a story by the BBC.

The impact of this ruling is uncertain at best. Antigua is a small trade partner with the U.S., and doesn't have the resources to guarantee U.S. compliance with the decision.