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U.S. Online Gaming Ban Leads to $3.4 Billion Compensation Claim by Antigua
Antigua has lead the way in seeking compensation for the United States government’s failure to comply with a WTO ruling about online gaming. The ruling was made in response to Antigua’s complaint in 2003 about the U.S.’s online gaming ban. Antigua complained that the ban was not in compliance with international trade rules. In 2004, a WTO panel found that Washington’s policy on online gaming was inconsistent with the U.S.’s obligations under the General Agreement on Tariffs and Services (GATS).
Recently, in an attempt to maintain its prohibitive policies about online gaming, Washington has announced its intention to modify its commitments under the GATS to exclude online gaming, and to have the compensation payable in the normal course to countries that may be negatively impacted waived in the circumstances. Washington’s justification for this remains the “protection of public morals”.
Antigua has pointed out the unfairness in the idea that WTO members can avoid the consequences of a loss before a WTO panel by withdrawing the commitment that gave rise to the claim. Antigua has sought compensation for the U.S.’s action, and has encouraged other WTO members to do the same and in fact, has been joined by the EU, India, Costa Rica, Canada, Macau and Australia. Antigua and Barbuda seek $3.44 billion in compensation.
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http://www.jamaica-gleaner.com/gleaner/20070624/business/business6.html