WTO and U.S. internet gambling prohibition

[highnote]

I wonder how this is going to effect offshore bookmakers so many people currently bet with.
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WTO allow U.S. to keep online gambling restrictions

An appellate body of the World Trade Organization has reversed a November ruling by an organization panel that said the United States should drop its ban on Americans wagering with offshore Internet casinos.
The appellate body said the U.S.’s gambling restrictions are "necessary to protect morals or maintain public order."

Antigua and Barbuda had argued that the prohibitions on Internet gambling were violations of trade commitments the U.S. has made as a member of the World Trade Organization.

"This win confirms what we knew from the start—WTO members are entitled to maintain restrictions on Internet gambling," acting U.S. Trade Representative Peter Allgeier said. "By reversing key aspects of a deeply flawed panel report, the appellate body has affirmed that WTO members can protect the public from organized crime and other dangers associated with Internet gambling.

"This is also a victory for the federal and state law enforcement officers and regulators who protect the public from illegal gambling and its associated risks of money laundering and organized crime."

No further appeals are possible in the matter.

[GameTheory]

I wonder how this is going to effect offshore bookmakers so many people currently bet with.
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WTO allow U.S. to keep online gambling restrictions

An appellate body of the World Trade Organization has reversed a November ruling by an organization panel that said the United States should drop its ban on Americans wagering with offshore Internet casinos.
The appellate body said the U.S.’s gambling restrictions are "necessary to protect morals or maintain public order."

Antigua and Barbuda had argued that the prohibitions on Internet gambling were violations of trade commitments the U.S. has made as a member of the World Trade Organization.

"This win confirms what we knew from the start—WTO members are entitled to maintain restrictions on Internet gambling," acting U.S. Trade Representative Peter Allgeier said. "By reversing key aspects of a deeply flawed panel report, the appellate body has affirmed that WTO members can protect the public from organized crime and other dangers associated with Internet gambling.

"This is also a victory for the federal and state law enforcement officers and regulators who protect the public from illegal gambling and its associated risks of money laundering and organized crime."

No further appeals are possible in the matter.
Read the stories from the other side of the pond -- both sides are claiming victory. The story above is very incomplete. The WTO ruled that there now exists a double standard -- the U.S. can't claim "public morals" as long as it allows any internet or phone wagering within its own borders. It sounds as if the U.S. will only be able to uphold its restrictions if it bans all internet gambling here at home, thus removing the double standard. That probably won't happen, which means the U.S. will be forced to open up the market so that foreign companies can compete on a level playing field. Which means one thing: legal, regulated internet gambling within the U.S., which would be a good thing for all of us. Let's hope it plays out that way -- the alternative is that the American account wagering sites would be shut down, ironically forcing even more (illegal) business to foreign competitors. It is also possible that the U.S. will just ignore the ruling and do nothing different, with the knowledge that other countries are unlikely to impose trade sanctions on the U.S.

There aren't any other appeals allowed, so things should shake out pretty quickly...

[highnote]

Very insightful. Thanks.

[Tuffmug]

Meanwhile there is a guy rotting in jail here for making book offshore! This is the land of the free only if the blue noses APPROVE of what you do.

[highnote]

Meanwhile there is a guy rotting in jail here for making book offshore! This is the land of the free only if the blue noses APPROVE of what you do.


I totally agree with you there. I think if you have modest means and a clean record that should be enough to allow you to run a gambling establishment. Right now, if you're not connected or mega-wealthy or a corporation it's next to impossible to run a legal gambling business. Going off-shore is one way. However, even that has become very difficult.

It's as if the lawmakers have written the laws to say that if you're not wealthy you're not worthy. I know a lot of wealthy companies and people who cannot be trusted. Enron ring a bell.

Billions were lost in the Enron scandal and lawmakers are afraid some gambler is going to get ripped off for a few hundred dollars or maybe a thousand by a betting establishment owned by a person of modest means? It's laughable. Maybe the lawmakers and law enforcers should pay attention to things that really matter -- like New York Stock Exchange listed companies that people have invested their life saving in.