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Political Unrest Because of Horserace Gambling

Some may feel that the Unlawful Internet Gambling Enforcement Act is “old news” at this point, but that just isn’t true for the international online casino gambling community. Not only are international companies placing a vested interest in supporting new bills before Congress, but many are still waiting to see how the World Trade Organisation responds to the U.S.’s blatant disregard for its latest ruling.

Just mere months ago the World Trade Organisation considered a case brought up by Antigua—one of the communities hit hardest by the U.S.’s ban on online casinos. The WTO’s ruling? the U.S. violated free trade agreement—the U.S.’s response was a firm “so what?” The Bush administration chose to essentially blow off the WTO’s ruling, and its request that the U.S. remedy these areas of error citing past laws, oversights, and a potential change in the trade agreements.

But that will probably not go very far toward placating the WTO considering the U.S. is still allowing online horse-race gambling so long as it does not cross state lines, nor does it offer any online casino gambling services. The Horse Race Act makes it legal for U.S. citizens to gamble on horse and dog racing, yet because of the UIGEA, no international companies are able to take U.S. horse racing bets—and this just doesn’t sit well with the WTO.

Though the WTO can do nothing to really force the U.S. to allow other countries a piece of the horse-race betting, or the online casino gambling for that matter, future foreign policy could be severely affected by the U.S.’s current disregard for internationally agreed upon policy.

An article in The Politico, a U.S. based publication featured commentary on the state of online casino gambling, and the U.S.’s current policy and regulations. The article highlights the U.S.’s stance on the WTO’s ruling, "On the last score, the Bush administration effectively blew off a WTO ruling this month that accused the United States of engaging in unfair practices by carving out an exemption for online wagering on horse races," the article comments. Key members of Congress say that the White House's decision to neither comply with nor appeal a WTO decision upholding an unfair trade practices complaint against the United States by Antigua, an offshore [online casino] gambling center, could end up hurting far larger U.S. trade interests around the world."