US loss in Internet gambling case

[Manne]

The World Trade Organization (WTO) confirmed its ruling the United States had done nothing to abide by an earlier verdict that labeled some U.S. Internet gambling restrictions as illegal.

In a published version of findings in a complaint brought by Antigua and Barbuda, initially sent to the parties in January, the Geneva-based trade referee said the Caribbean island had provided additional evidence that strengthened its case.

"The panel concludes that the United States has failed to comply with the recommendations and rulings of the (WTO's) DSB (Dispute Settlement Body)," the WTO said in the ruling, which can be appealed.

A spokeswoman for the U.S. Trade Representative's office in Washington said the United States was mulling its next step.

"We are currently reviewing our options," USTR spokeswoman Gretchen Hamel said.

"It is important to emphasize, however, that nothing in the panel's report undermines the broad, favorable results that the United States obtained from the WTO in April 2005. Specifically, the WTO agreed with our position that the U.S. gambling laws protect public order and public morals," Hamel said.

At issue was an April 2005 WTO verdict against U.S. prohibitions on online betting, notably on horse racing. Since then, the U.S. Congress has passed additional legislation to ban betting over the Internet.

Antigua has built up an online gambling industry to make up for declining revenues from tourism.

"This is a smashing success for Antigua in every possible way. The report will sweep away any lingering doubt that Antigua has obtained a clear and convincing win over the United States in this matter," said John W. Ashe, Antigua's ambassador to the WTO.

In the ruling, the WTO panel of three trade judges said that the United States had not contested the Antiguan charge that it had done nothing to implement the 2005 ruling.

Instead, Washington had simply sought to reopen the case, but without giving the panel any grounds to do so, it said.

The ruling will become final in 60 days if neither the United States nor Antigua appeals to the WTO Appellate Body.

Once that occurs, the United States and Antigua would have 20 days to negotiate a compensation package, Hamel said.

If the two sides cannot agree on a compensation package, the next step for Antigua would be to request permission from the United States to hike duties on U.S. goods.

If Washington objects, the issue would be sent to a WTO arbitrator to determine the appropriate sanctions amount.

Hamel would not comment on whether the United States might accept whatever sanctions Antigua imposes.

The United States exported $194.2 million worth of goods to Antigua in 2006 out of more than $1 trillion in total U.S. goods exported that year.

[mtajim]

Yes thats good news , US government was trying to put bann on gambling but i dont think they can because gambling industry has become too big than they can think

[kisna]

Yeah, gambling is the one of the biggest intertainment industry. There is no way to ban this.

[mtajim]

But even if its not banned officially but some countries dont allow gambling as its not morally and ethically good