Ongoing U.S. State-Federal Dispute over Internet Gambling

Following the November 2004 World Trade Organization ruling that the United States violates the General Agreement on Trade in Services (GATS) by prohibiting the use of credit cards for online bets, the American States of North Dakota, Illinois and Georgia have taken steps towards legalising online gambling. The legislature of Illinois is considering a bill to allow online sales of lottery tickets to adult state residents. A similar bill passed the Georgia House last week. A bill allowing Internet poker sites to operate inside North Dakota also passed the House in February. These initiatives seek to tap into the growing popularity of Internet gambling; it is estimated that more than $200 million is bet daily on Internet poker. The Department of Justice issued a letter last week stating that the North Dakota bill violated the federal Wire Act of 1961, which many claim only prohibits placing sports bets by telephone. Following this letter, the North Dakota Senate quashed the bill by a vote of 44-3. The Federal Government is also appealing the World Trade Organization ruling supporting Antigua's and Barduba's position that the USA's position on Internet gambling violates the General Agreement on Trade in Services.

For additional information, visit:

http://www.igcouncil.org/read_news.php?id=2

http://www.usatoday.com/money/industris/technology/2005-03-15-cyber-gaming-usat_x.htm

http://igamingnews.com/index.cfm?page=artlisting&tid=5752

Volume III

Ongoing U.S. State-Federal Dispute over Internet Gambling