As Antigua tries to build up its Internet gambling industry to compensate for its declining tourism revenues, the U.S. is introducing legislation to outlaw the booming gaming industry. Antigua’s Ambassador to the World Trade Organization (WTO) has objected to the move, stating “each of the bills is in key respects expressly contrary to the rulings and the recommendations of the Dispute Settlement Body of the WTO.”
U.S. federal law prohibits the placing of bets across state lines, and consequently views offshore Internet gambling to be illegal. In 2003, Antigua challenged the U.S. law with the WTO. The U.S. argued that the WTO allows states to restrict trade on moral grounds. The WTO agreed with the U.S., but made reference to the apparent discrimination between foreign and local operators over horse racing, which violated trade rules. The U.S. has yet to introduce legislation to overcome such inconsistency.
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