Offshore Gambling Ruling

On Thursday, a World Trade Organization appellate body released its ruling regarding the legitimacy of U.S. offshore online gambling policies. The verdict related to an appeal filed by the U.S., after the WTO ruled in favor of Antigua and Barbuda in November of last year. The original WTO decision stated that U.S. restrictions against offshore online gambling ventures violated international trade agreements. Instead of clarifying its position on the issue, however, the WTO ruling was ambiguous enough to allow both the U.S. and Antigua to claim victory. While the current ruling maintained most of the previous findings, the WTO appellate body recognized the U.S.'s concerns for social problems associated with gambling. Specifically, the WTO referred to the 1961 Wire Act, which prohibits sports betting over the internet, citing it as necessary to uphold "public morality" and "public order". Although the U.S. sees this recognition as essentially legitimizing its online gambling policies, the WTO also found U.S. policies to be discriminatory. Accordingly, the WTO posits that U.S. citizens are given easier access to domestic gambling venues than offshore online gambling options. According to the U.S., the WTO appellate court ruling will allow the maintenance of most existing restrictions against online gambling. The U.S. Trade Representative stated that in light of the WTO's ruling, it does not plan to request that congress relax current restrictions against online gambling. Despite the U.S.'s claim of victory, Antigua and Barbuda see the WTO's decision as falling in their favor. After all, the Appellate Court's ruling upheld the original finding, which stated that the U.S. had signed free trade agreements, which obligate the country to permit offshore gambling. According to one of the attorneys serving Antigua in the WTO case, the ruling should free U.S. companies from fear of prosecution over maintaining dealings with Antigua-based gambling companies. Within the next 30 days, a WTO dispute settlement committee is anticipated to adopt the reports released by the panel and appellate body regarding this case. Additionally, the U.S. is not expected to appeal the current ruling. Source: OCN Staff