“Online Gambling Case Pits Antigua Against U.S.”

The tiny nation of Antigua, whose tourist industry has suffered terribly since a series of hurricanes there in the 1990’s, is hoping that the online gambling industry will be its knight in shining armor and rescue its economy. But with the U.S. ban against internet gambling, Antigua faces at least one big obstacle.

Conflicting interests have pitted the tiny island nation of Antigua against the United States. While the United States has banned internet gambling, Antigua is pinning its every hope on e-commerce industry – particularly internet gambling – to diversify its economy and attract more foreign currency. With estimates indicating that some 3000 additional jobs could be created for Antiguan residents, it is no wonder that the Antiguan community is hoping that the WTO will find the U.S. ban against internet gambling to be in violation of U.S. trade agreements. Antigua filed a case with the WTO in 2003, arguing both that the U.S. ban is a violation of these agreements, and also that the U.S. was obstructing Antigua’s efforts to strengthen its economy.

Though there are no federal laws prohibiting gambling in the United States, there are some U.S. state laws that do so. There is also the 1961 Wire Communicates Act, which some U.S. lawmakers are using to prosecute gaming site operators. It is very murky terrain, however, as these gaming sites are based in countries where internet gambling is legal.

A ruling by the WTO in favor of Antigua would mean that the U.S. would have to drop its ban against internet gambling and allow Americans to place bets in online casinos – music to Antiguan ears.