A three-member WTO panel has ruled that the United States has failed to comply with a ruling which restricts offshore online gambling companies.
This would open the door for possible sanctions unless the US changes the rules governing online betting in the country.
This is a favorable ruling for the tiny nation of Antigua in its four-year battle with the USA over the Bush administration’s doggedly conservative online gambling policies.
The panel ruled that US can maintain its current online gambling stance only if the 1978 Interstate Horseracing Act is modified.
Currently, betting online on horse races is the only legalized form of online gambling in the United States which has been seen by Antigua (and now the World Trade Organization) as "protectionism" of local businesses.
In 2005 WTO ruled that the United States have the legal right to prevent online betting and gambling as a way of protecting public morals and order but the WTO ruling made the US acknowledge that it was a setback.
Washington is yet to announce if it will appeal the ruling.
Many people remain sceptic, however, if the smallest nation to win WTO ruling will have any power to force sanctions against the biggest economy of the world.
Despite the ruling it’s unlikely that the US will legalize online gambling
Growing pressure could be placed on the U.S by the European Union who say that prohibiting British and other European on line gambling sites from providing their services there is in conflict with worldwide competition laws.
The likeliest out come of the ruling by the WTO is that US lawyers will fight to overturn the decision in a lengthy legal battle.
Failing that Legislators would simply amend existing laws pertaining to online gaming insuring gambling online is not allowed in the foreseeable future.
In the meantime American online casinos will continue to target the United Kingdom in a bid to keep to diversify and expand their international customer base.




