The case was brought against the US by the tiny Caribbean nation of Antigua and Barbuda, which said that a US ban on internet gambling was in breach of world trade rules. Both sides claimed victory last night.
The WTO upheld its finding that "a prohibition on the remote supply of gambling and betting services" breaches provisions of the General Agreement on Trade in Services, or GATS. It concluded its 146-page report by recommending that the US amend certain laws found to be inconsistent with the GATS.
Peter F Allgeier, the acting US trade representative, said all the US had to do was "clarify" certain internet gambling restrictions to meet WTO rules, insisting that the country can still prevent Antiguan internet gambling companies from operating in the US.
But Mark Mendel, legal counsel for Antigua, insisted that his side won, saying the US will have to treat Antiguan internet casinos in the same way as traditional casinos and that Antiguan companies must have fair access to the US market.
Antigua and Barbuda has less than 67,000 citizens, but 3,000 of them are employed in the on-line gambling industry, according to local reports. It took legal action in 2003 because its economy was hit hard by the moralistic stance of the US.
