“WTO Ruling in Favor of Antigua Awaiting U.S. Compliance”

In Antigua’s 2003 complaint to the World Trade Organization (WTO) concerning United States anti-gambling legislation, it cited U.S. policy toward offshore online gambling operators was discriminatory and unfair under international trade agreements. Claiming state law and federal law in the U.S. promoted discrimination against gambling operators, Antigua highlighted its dependence on the new online gambling industry. Previously relying on tourism for the majority of its revenue, the country has seen considerable growth since it first encouraged gambling operators to set up shop in Antigua.

By arguing that its economy was being unfairly affected by U.S. legislation, Antigua is the smallest country ever to lay a complaint with the WTO and to benefit from a WTO ruling. The ruling stipulated that the U.S. argument for banning online gambling in the interest of public morals required clarification in order for the legislation to avoid being deemed discriminatory in nature.

One particular component of U.S. legislation under scrutiny was the Interstate Horseracing Act. The WTO found this law was in violation of international law because it outlawed international betting while simultaneously allowing domestic interstate betting.

After the ruling, press secretary for the U.S. Trade Representative Neena Moorjani was quick to clarify the United State’s position. “The U.S. has already announced its intention to comply with the WTO finding,” she said. “We will continue our ongoing compliance efforts.”

However Moorjani also remarked that U.S. compliance with the ruling will “not involve weakening U.S. restrictions on internet gambling.” In a possible move that may involve the U.S. Congress, Moorjani advised that the clarifications sought by the WTO are currently under investigation. The WTO’s ruling stipulates that the deadline for U.S. compliance is 3 April 2006.