WASHINGTON-The Bush administration today said it won an important victory when the World Trade Organization appellate body sided with the United States on key issues in a challenge to U.S. laws on Internet gambling.
“This win confirms what we knew from the start-WTO members are entitled to maintain restrictions on Internet gambling,” said acting U.S. Trade Representative Peter F. Allgeier. “We are pleased that the appellate body has agreed with our position that the U.S. gambling lawsuit issue here protects public order and public morals. By reversing key aspects of a deeply flawed panel report, the appellate body has affirmed that WTO members can protect the public from organized crime and other dangers associated with Internet gambling. This is also a victory for the federal and state law enforcement officers and regulators who protect the public from illegal gambling and its associated risks of money laundering and organized crime.”
The next step in the process is for the WTO’s dispute settlement body to formally adopt the panel and Appellate Body reports within 30 days. There is no further appeal.
The dispute concerns Antigua’s allegation that U.S. state and federal laws prohibiting the cross-border supply of gambling services-for example, Internet and telephone gambling-are inconsistent with U.S. obligations and schedule of specific commitments under the General Agreement on Trade in Services. Antigua argued the United States violated the market access provisions of the GATS by barring supply of gambling services on a cross-border basis-such as supply of gambling services by Internet from Antigua-based Web sites.
