The ruling followed a complaint to the WTO in 2003 by the tiny Caribbean state of Antigua and Barbuda. The state argued that US prohibitions against internet gambling were discriminatory and in breach of international trade agreements that require the US to allow foreign internet companies to offer their services to US citizens.
In its defence, the US argued that the restrictions it has in place do not breach the trade agreements, which allow exceptions for moral reasons. The US said its restrictions are necessary because gambling on the internet is different from casino-based gambling, not least because of the difficulty in preventing children from accessing the services.
It also pointed out that when the WTO was set up in 1995, gambling services were excluded from its remit.
But these arguments were rejected in a preliminary ruling by the WTO in March 2004 and then again in its final report in May 2004, which found that the US was in breach of the WTO rules.
The US appealed and, in a ruling issued in April this year, the WTO ruled that the US could maintain certain restrictions on internet gambling, but its laws must change because they currently discriminate against foreign operators.
These changes must now be introduced by 3rd April 2006.
Speaking to Reuters, Neena Moorjani, press secretary for the US Trade Representative’s (USTR’s) Office, said:
"USTR will not ask Congress to weaken US restrictions on internet gambling. We had asked for 15 months to comply as it was our reasonable and realistic estimate of the necessary amount of time. But we are studying the arbitrator's award and will do our utmost to comply."
