US Losing Online Gambling Battle Against Antigua

In April 2005, the WTO ruled in favor of Antigua who claimed that the US prevents foreign internet gambling firms from doing business with US residents. This assertion that proved to be true especially with the release of the Unlawful Internet Gambling Enforcement Act (UIGEA) directly goes against the General Agreement on Trade in Services which the US, along with all the other WTO members, signed.

In March 2007, the WTO again ruled in favor of Antigua in a final appeal judgment. The ruling even pointed out that the US government was not really against online gambling in general but only gambling activities with non-US businesses. WTO expounded by citing cases of US support for only US-based internet gambling through horse betting, sports fantasy, and other booking services. After this final judgment, the US still showed its tenacity by withdrawing from the GATS agreement rather than simply complying with the guidelines.

Because WTO members are allowed to file claims against other members that hinder the development of business, the US may now face multi-billion dollar claims not only from Antigua but from other WTO members as well. The European Union has already reported filing a $15 billion claim. Other claims from Canada, Japan, Macau, Costa Rica, and India have also been filed. Antigua and Barbuda have also initiated the imposition of trade sanctions at $3.4 billion per year on the US. As of now, there is a possibility that Antigua's claims against the US will surpass $7 billion.