Casino News: USA criticized over failure to act on WTO ruling

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USA criticized over failure to act on WTO ruling

 July 31, 2007, 2:08 pm (1 year ago)
The United States has been warned that it should bring its internet gambling dispute with the World Trade Organization to an amicable conclusion, or risk negative consequences.

The US said in may that it would withdraw its commitments to the WTO to open its markets to offshore-based internet gambling operators, after Caribbean island nations Antigua and Barbuda filed a dispute.

The spat between Antigua and Barbuda and the United States over the Unlawful Internet Gambling Enforcement Act (UIGEA) escalated last week as Antiguan authorities sought to impose a $3.4 billion sanction against the US.

Officials in Antigua and Barbuda claim that the United States is in the wrong because the UIGEA was deemed illegal by the World Trade Organization (WTO).

However, the US has pronounced the sanctions excessive as the revenue created by the gambling industry in Antigua and Barbuda comes in at about $130 million.

The UIGEA, which was introduced last October, outlawed payment by bank or credit card companies to internet casinos, poker rooms and other online gambling companies.

The United States has been at loggerheads with the WTO over its gambling laws since 2003.

And this week, Sallie James, policy analyst at the Cato Institute's Center for Trade Policy Studies said the United States’ response to the WTO’s ruling is “unprecedented in dispute settlement history” and could damage the reputation of the WTO.

The WTO's ruling in March found that the US unfairly prohibits foreign internet gambling operators from accessing the US market.

The European Union India, Japan, Australia, Canada, Costa Rica, Macao, and a number of Caribbean nations are also seeking compensation from the US for economic injury resulting from this trade agreement violation.
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