WTO to probe limits on Internet gambling
By SAM CAGE, Associated Press Writer

http://news.yahoo.com/s/ap/20060719/ap_on_hi_te/wto_internet_gambling_1

GENEVA - The WTO on Wednesday set up a panel to investigate whether U.S. 
restrictions on Internet gambling comply with international trade rules.

The Caribbean country of Antigua and Barbuda had asked for the
World Trade Organization to set up the panel after consultations with 
the United States failed to yield a solution.

The dispute centers on whether Washington should drop prohibitions on 
Americans placing bets in online casinos. A previous WTO ruling said 
that some U.S. laws were in line with international commerce rules, but 
others were not.

"The United States has been busy passing legislation that is directly 
and unequivocally contrary to the ruling," Antigua told a meeting of the 
WTO's dispute settlement body.

"Antigua and Barbuda considers that the United States has taken no 
measures to comply with the recommendations and rulings of the DSB 
(Dispute Settlement Body)," Antigua said.

The United States contends that Internet gambling should be prohibited 
because it violates some U.S. state laws, and told the WTO's dispute 
settlement body in April that it believed its laws were in line with 
trade rules.

Antigua says the offshore industry is a lucrative source of revenue and 
provides an income for hundreds of islanders. The prohibitions, it says, 
are hurting the two-island country's efforts to diversify its economy 
away from tourism.

In particular, Antigua cites three federal U.S. laws that effectively 
prohibited their companies from providing gambling services to consumers 
in the United States: the Wire Act, the Travel Act and the Illegal 
Gaming Business Act.

The panel will report on U.S. compliance within 90 days. That decision 
can then be appealed by either side.

Antigua, a former British colony, filed the case before the WTO in 2003, 
contending that U.S. restrictions on Internet gambling violated trade 
commitments the United States made as a member of the WTO.

U.S. trade officials disagreed, saying that negotiators involved in the 
Uruguay Round of global trade talks, which created the WTO in 1995, 
clearly intended to exclude gambling.


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