Online gambling dispute goes far beyond Antigua and the US.

[bartongrl1]

WASHINGTON: The refusal of the United States to comply with a World Trade Organization decision on online gambling is threatening to undermine the entire set of rules binding the international trade system.

The WTO is to decide soon on a demand from the Caribbean nation of Antigua and Barbuda for $3.4 billion in annual compensation from the United States, whose law banning Americans from wagering on Internet gaming sites was ruled illegal by the WTO in 2005.

The implications of the case go far beyond Antigua, a nation of 69,000. That is because instead of rewriting its gambling laws, the U.S. rewrote its trade rules to remove the issue from the WTO's jurisdiction. The prospect that other countries may take a similar tack if cases do not go their way has alarmed the international trade community.

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[kstcmt]

Yesterday Reuters reported that the US had reached a settlement agreement with the European Union (EU), Canada and Japan relative to the US retraction of their online gambling market to World Trade Organization (WTO) trading partners. Although the EU stated that it will also "continue to press for non discriminatory treatment in U.S. internet gambling legislation," the settlement takes pressure off the US to alter its current trade policy relative to online gambling and restrictions imposed by the passage of the UIGEA. The EU announcement drove stock prices of publicly traded online gambling companies lower. PartyGaming shares were down 5.79% on the news.

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