“Ongoing International Battle over Internet Gambling”

An argument between the tiny Caribbean nation of Antigua and the United States of America is being closely watched by anyone and everyone with an interest in online gambling. Riding on the outcome of this argument is the question of whether online gambling will become legally available to United States citizens.

The World Trade Organization ruled in favor of Antigua and its right to make online gambling available to U.S. citizens, but that doesn’t mean U.S. officials are taking this news lying down. In fact, they have appealed this decision, and everyone in the Internet gambling industry is eagerly awaiting the outcome.

Antigua’s argument is that it isn’t fair to prevent online gambling sites based in Antigua from accessing U.S. consumers if gambling – and even Internet gambling – is allowed in certain American states. To do so is to violate fair trade practices and to discriminate against non-American companies. The irony, according to the Government of Antigua, is that it was the World Bank in Washington who suggested that Antigua might boost its economy by becoming involved in Internet industries. Antigua is particularly bothered by the fact that America seems to be trying to take the moral high ground when, by allowing gambling on its own shores, it has no right to do so. Accusing the U.S. of hypocrisy, Antigua says that legal gambling exists in several places in the United States, including small rural towns, Indian reservations, and some large cities. In Las Vegas, one can purchase lottery tickets over the Internet. Doing their homework, the Antiguans further state that gambling can also be found on certain military bases, even bases in states that prohibit gambling.

The United States, nevertheless, continues to argue that Internet gambling is in a class by itself, and cannot be lumped together with conventional forms of gambling. Internet gambling, according to U.S. officials, poses a whole host of problems not seen or dealt with before. The U.S. also came right back at the WTO, saying that the 1995 General Agreement on Trade in Services ruling exists specifically to stop offshore gambling.

Jay Cohen, an American who served 17 months in jail for allowing Americans to bet at his online Antigua-based gambling site, is particularly interested to see what will become of this U.S./Antigua feud. The way he sees it, he was arrested and convicted for a non-crime (the U.S. claims his actions violated the U.S. Wire Act), and he is eager to see the WTO confirm that.