W.T.O Rules Against U.S.A. Gambling Policies

The World Trade Organization has ruled that the US policy prohibiting online gambling violates its obligations under international trade law.

This is the WTO’s first decision on an Internet-related dispute, and has prompted outrage from the Bush administration, which has vowed to appeal the decision.

"It's appalling," said Rep. Bob Goodlatte, R-Va. "It cannot be allowed to stand that another nation can impose its values on the U.S. and make it a trade issue."

The ruling by a WTO panel Wednesday is being hailed by online casinos operators overseas as a major victory that could force the United States to liberalize its laws.

The decision stems from a case taken to the WTO in June by the island nation of Antigua and Barbuda, which licenses 19 companies that offer sports betting and casino games such as blackjack over the Internet.

Antigua and Barbuda argued that U.S. trade policy does not prohibit cross-border gambling operations and that the United States would be hypocritical to do otherwise because it wants to allow American casino operations to operate land-based and Internet-based subsidiaries overseas.

Ronald Sanders, the island’s chief foreign affairs representative, said he believes the United States must liberalize its online gambling regulations or risk being hypocritical about its stance on free trade. "The U.S. says it wants open competition," he said. "But it only wants free trade when it suits the U.S."

Millions of Americans gamble over the Internet, using credit cards or online payment services to wager on sports or at games such as poker and blackjack.