07-04-2005 The WTO rules in favour of Antigua

The WTO accepted much of the US reasoning, but it said that when it came to betting on horse racing, there appeared to be discrimination between foreign and local operators, which violated trade rules and had to stop.

Unless the US wants to repeal all of its laws that currently permit any form of domestic remote gambling and also adopt laws to affirmatively prohibit it in all forms country-wide, they will have to provide Antigua fair access," said Mark Mendel, the lead legal counsel for Antigua in the dispute.

"Unless the US wants to repeal all of its laws that currently permit any form of domestic remote gambling and also adopt laws to affirmatively prohibit it in all forms country-wide, they will have to provide Antigua fair access," said Mark Mendel, the lead legal counsel for Antigua in the dispute.

The WTO ruling is expected to end subpoenas or threats of prosecution from the United States Justice Department to US companies who choose to do business with Antigua offshore gaming companies.

"Justice has been served and potential compliance issues facing various US corporations and the US Department of Justice will now be resolved in a manner favorable to fair and responsible international commerce," said Mendel.

Mendel stated that the WTO ruling will ultimately result in US media and banking firms making accommodations to Antiguan gaming operators. He also hinted Antigua may resort to legal action against firms that continue to refuse to deal with its operators.

"We can now go to banks and say the US preventing Antigua from offering services is in violation of WTO agreements so you need to do business with us," said Mendel.

"We will also say that Antiguan firms should be allowed to advertise, and maybe we will use the US court system to see that happen."

However, a US government official told the Associated Press that the ruling was a victory for the US.

"This is effectively a win for the United States, as it seems to say that if we tighten US internet gambling restrictions, we'll be fine," said Peter Allgeier, the acting U.S. Trade Representative.

It is possible that the WTO ruling could lead to the US clamping down further on internet gambling through new legislation.

Mendel said talk of a US victory was little more than "wishful thinking" and he didn’t believe the US would go down that route.

"Any laws would have to apply to every state in the US or they would be in violation of their trade agreements."

"This would mean making remote gaming illegal in Nevada and repealing existing legislation, and I don't see that happening," he added

To read the original text of the ruling, click here.