Nitty-Gritty of Offshore Online Casino Ban: 3
At this point the global online casino gambling industry is in a huge growth
spurt and many of the internet gambling companies negatively affected by the
UGIEA are able to regain some profitability by finding a niche in the European
gambling market. So while the online casinos stabilized the foreign countries
negatively affected by the UIGEA took umbrage to the US gambling policy and
filed complaints with the World Trade Organization (WTO). Antigua was one of the
countries hardest hit by the ban and the country’s economy took a nose-dive
after the UGIEA came into affect. The EU also took great exception to the US’s
online gambling policy.
The WTO ruled on the case and found the US government in violation of
international trade agreements that specifically noted that the online casino
gambling industry was a part of the trade and open market part of the treaty.
The WTO asked that the US immediately alter the controversial UIGEA and come
into compliance with the 1994 GATS treaty. The Bush administration, undaunted by
the authority of the WTO, instead noted that the US would then alter its online
casino gambling commitments in the GATS.
The alteration of trade commitments meant that all of the countries negatively
affected by the new treaty agreements could file compensation claims with the
WTO. This is another point at which the US thumbed its nose at the WTO and
undermined the WTO’s authority for refusing to acknowledge some of the countries
claiming a right to compensation. |