United States VS. WTO Over Internet Gambling

As early as next month, if arbitrations were to fail, Antigua and others, including the European Union, could possibly begin exacting sanctions over the U.S. and their decision in withdrawing from a World Trade Organization accord which recognize the legalities of Internet gaming.

Seeking sanctions of $3.4 billion, Antigua suggests the possibility of claiming that amount by becoming a harbor for pirated property like movies and musical recordings. $100 billion are total sanctions claimed by the European Union and other countries. The United States, being in negotiations, states that more appropriate compensation levels, would be far less, the U.S. has offered Antiguay about $500,000.

In a response last May from the USTR, stated the U.S. laws have been in place for decades that ban interstate gaming. Deputy U.S. Trade Rep. John K. Veroneau said, when negotiations were going on for GATS, "no WTO member could have reasonably thought that the U.S. was agreeing to commitments in direct conflict with its own laws."

In his May statement, he said the U.S. had decided "to exclude gambling from the scope of the U.S. commitments under the GATS."

This issue is being viewed as one showing discrimination against foreign providers. The case on Antigua is expected to be decided upon, by the end of this month, and a mid-December deadline for others.