The United States and the Caribbean nation of Antigua and Barbuda have suspended litigation stemming from a proceeding earlier this year in which Antigua successfully challenged the U.S. at the World Trade Organization ("WTO"). The WTO decision found that a U.S. ban on Internet gambling violates global trade rules.
The U.S. position is that Internet gambling is illegal if it involves activity on U.S. soil. Antigua is one of the centers for Internet gaming operations and it relies on the proceeds thereof to compensate for declined tourism. However, industry officials say that U.S. residents account for the major players in casino-style games and betting for offshore centers.
Perhaps this conciliatory approach to the issue represents a U.S. initiative to consider instituting a regulatory framework instead of banning Internet gambling entirely.
The suspension is in effect until August 23, 2004. However, Antigua has the prerogative to revoke the suspension with 10 days notice to the WTO panel.
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