A World Trade Organization appeals body has accepted some prohibitions against cross-border and Internet gambling in some American states as valid, agreeing with the U.S. federal government–in perhaps ominous sounding language–that some federal laws could "protect public morals or maintain public order."
The full WTO had previously agreed with Antigua and Barbuda that the U.S. restrictions were harmful to efforts to advertise overseas gaming on American websites or in the American media without legal threats. The April 7 appeals decision all but allows Louisiana, Massachusetts, South Dakota, and Utah anti-cross-border or Internet gaming to stand.
Both sides, however, claimed victory. "U.S. restrictions on Internet gambling can be maintained," said U.S. Trade Representative Peter Allgeier to reporters after the decision. "This report essentially says that if we clarify U.S. Internet gambling restrictions in certain ways we'll be fine."
Antigua and Barbuda, however, called it "a landmark victory for [us] as the smallest WTO member to defeat the United States, the largest member." The tiny Caribbean island country said the appeals ruling would open opportunities to advertise its Internet gambling in the U.S.
"We expect that major Internet search engines, including Google and Yahoo, financial institutions, and credit card service providers will be required to accept advertising from Antiguan Internet gaming sites as they do currently with U.S. gaming interests," said an attorney representing Antigua and Barbuda, Mark Mendel.
The appeals panel held that the U.S. did not show that any American laws on racing bets applied equitably to foreign and domestic online betting suppliers and that some restrictions under U.S. federal law were not consistent with a WTO services agreement.
Antigua and Barbuta first complained about the U.S. restrictions two years ago, part of the country's battle to allow online gaming–a rising business in that country, and one attracting hundred of American gamblers–to help cut the island's dependence on tourism as a prime economic mover.
