Despite a four year legal battle with Antigua and Barbuda, the U.S. has suffered a recent defeat in the pantheon of online gambling. In April 2005, the World Trade Organization (“WTO”) ruled that U.S. laws which barred the placing of bets across state lines, by electronic means, appeared to discriminate against foreign betting operators; and as such, violated WTO rules. However, since the 2005 decision, the U.S. Congress has passed subsequent legislation in order to ban online gambling.
In light of Antigua and Barbuda’s waning tourist industry, Internet gambling could provide the Caribbean country with a viable economic infrastructure. Thus, in July 2006, Antigua and Barbuda complained to the WTO that the U.S. has been non-compliant with the 2005 ruling, and WTO’s recent report tends to agree. However, the recent report was only a preliminary report issued to the U.S. and Antigua and Barbuda. As such, the U.S. will have an opportunity to submit comments to the WTO before it issues a final, public report, scheduled for March.
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