World Trade Organization
Author | International Law Group |
A Dispute Settlement Panel of the World Trade Organization (WTO) has largely sided with Antigua and Barbuda (hereinafter "Antigua") in the dispute with the U.S. over cross-border gambling and betting. Antigua sought consultations with the U.S. before the WTO on March 13, 2003, claiming that certain federal and state laws render cross-border gambling and betting services, as well as related international money transfers and payments, illegal. These restrictions are allegedly inconsistent with U.S. obligations under The General Agreement on Trade in Services (GATS). On July 21, 2003, the WTO established a Panel to resolve the dispute.
Antigua claimed that the U.S. maintains a variety of commercial gambling and betting services, such as horse races, poker, black jack, lotto, bingo, and "scratch card games." As part of its economic development strategy, Antigua began in the mid-1990s to build a largely Internet-based, "remote access" gaming industry. It provides for two kinds of gambling and betting licenses: (1) interactive gaming (casino type), and (2) interactive wagering (sports betting). The interactive gaming mimics regular casinos with detailed graphics, and offer card and dice games. The interactive wagering provides for bets on sports and other events, and also permits telephone betting. Usually the players have to set up and fund an account to participate.
In 1999, Antigua had 119 licensed operators with about 3,000 employees, accounting for about 10 percent of its Gross Domestic Product. By 2003, however, the number had fallen to 28 operators with less than 500 employees. Antigua attributes this to U.S. restrictions on credit card payments, wire transfers, and other financial transactions.
The Panel holds first that the U.S. Schedule under GATS includes specific commitments with respect to gambling and betting services (sub-sector 10.D). In the second place, certain federal laws, including the Wire Act (18 U.S.C. Section 1084), the Travel Act (18 U.S.C. Section 1952), and the Illegal Gambling Business Act (18 U.S.C. Section...
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