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US Violates WTO Because of Online Casino Ban

Many online gamers in the United States have resigned themselves to accepting the government’s ban on online casinos and online gambling. The Unlawful Internet Gambling Enforcement Act (UIGA) though, is now causing international concerns. Though the Act is relatively new, already other countries are feeling the effects of the US’s ban—and needless to say, those countries are less than pleased.

Much of the online casino and online betting industry is based out of the Caribbean island; islands like Antigua and Barbados rely on the 32 online casinos to make profits around a billion dollars when US citizens are able bet online. But now that the financial institutions in the US cannot accept US monies for betting, the island countries are seeing dramatic decreases in profits, closer now to $130 million.

That change though did not go unnoted and both Antigua and Barbados filed complaints with the World Trade Organization against the United States’ restrictions on online casino gambling. After investigating the claims, the WTO’s Compliance Board came to the following conclusion: “The Panel concludes that the United States has failed to comply with the recommendations and rulings of the [Dispute Settlement Body] in this dispute.”

And though this means the United States ought to take a second look a their restrictions on online casinos, many question whether the United States will take any action to rectify the situation. The US, and the Bush Administration in particular, has shown a precedent for disregarding the WTO’s recommendations when they affect US policy.