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update to online gambling laws
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World Trade Organization Panel Rules Against US Online Gambling Restrictions:
A three-member WTO panel ruled today that the United States has failed to comply
with a previous ruling which forbids the restriction of offshore online gambling
companies. This would open the door for possible sanctions unless the US changes
the rules governing online betting in the country.
This is a very favorable ruling for the tiny nation of Antigua in its four-year battle
with the USA over Uncle Sam's online gambling policies.
The panel ruled that the US can maintain its current online gambling stance only if
the 1978 Interstate Horseracing Act is modified to exclude Internet wagering on
horse races. Currently, online betting on horse races is the only legalized form of
online gambling in the United States, which has been seen by Antigua (and now the
World Trade Organization) as "protectionism" of local businesses. This was the basis
for Antigua's complaint before the WTO.
In 2005 WTO ruled that the United States has the legal right to prevent online
betting and gambling as a way of protecting public morals and order, which was
seen by the US Trade Department as a clear win of the case, but the WTO ruling
on Friday made the US acknowledge that it was a setback. Washington is yet to
announce if it will appeal the ruling, but it's safe to assume that they will.
Many people remain sceptical, however, if the smallest nation to win WTO ruling will
have any power to impose sanctions against the biggest economy in the world. It is
unlikely that the US will legalize online gambling. On the other hand, it is highly
unlikely that the horse racing industry (in a country which is working fast toward
developing systems for online betting on all of the US horse racing tracks) willl bow
down and allow US lawmakers to cut off the special treatment they have been
giving this branch of the gambling industry. It seems that it is now up to the small
nation of Antigua and Barbuda to find the muscle it needs to press the USA -
gaining enough powerful allies, such as the UK, which has been applying its own
muscle in the European Union, would greatly help in any future engagements.
This article reprinted with permission from www.ogpaper.com
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