US Online Gaming Legislation Violates WTO
October 11, 2006The World Trade Organization (WTO), according to its web site, "is the only global international organization dealing with the rules of trade between nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the world’s trading nations and ratified in their parliaments. The goal is to help producers of goods and services, exporters, and importers conduct their business."
In 1994, the United States signed a treaty, the only avenue open to WTO member nations to set up restrictions and limitations on free, foreign trade, called the General Agreement on Trades in Services (GATS). It tells countries to list foreign services they will bar or admit.
One such category in the GATS included "Recreational, Cultural & Sporting Services". The United States agreed to let in every recreational service except sporting. The US never made mention that gambling was included in such services. That's all they had to do to keep foreign online gaming providers, including poker rooms, from entering the US market!
Antigua & Barbuda is home to about 30 licensed gaming companies. Antigua & Barbuda, which are also member nations of the WTO, like the US, have faced quite a bit of trouble in the United States via their gaming operations.
In 2003, Antigua & Barbuda filed a formal complaint against the US with the WTO, claiming that the US has systematically tried to stop US residents from using services offered by Antiguan companies. In 2005, the WTO sided with Antigua and ordered the US to comply. However, the US tried to say that they found gambling 'morally wrong' which is why they took such measures.
The WTO shot back that since the US allows gambling in brick and mortar casinos that they could NOT use this as their reason.
Basically, the US has ignored the WTO ruling and now with the Unlawful Internet Gaming Act it seems that they're ignoring the WTO's and Antigua's claims.
The WTO is currently considering the issue of US non-compliance. A formal answer is expected in early 2007. Meanwhile, sources speculate the the UK, which has been hard hit by the new anti-gaming legislation in the US, might enter the fray and lodge its own formal complaint against the United States with the WTO.
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