Online Gambling: Antigua and Barbuda Seeks Compensation from US after WTO Adopts Compliance Report

On May 22, 2007, the World Trade Organization (WTO) formally adopted an earlier WTO Compliance Panel's report (WTO Report) regarding the gambling issues between the tiny Caribbean nation of Antigua and Barbuda and the USA. The WTO Report found that the measures taken by the US with respect to the cross-border provision of gambling and betting services are illegal restrictions under the WTO. As a result of the ruling, Antigua and Barbuda seeks compensation from the US and has proposed targeting American trade-marks, copyrights and telecommunications companies as a form of compensation. Antigua and Barbuda has also asked other countries to join and seek compensation from the US. In response, the US, without directly challenging the WTO Report, has announced its intention to modify its commitments under the General Agreement on Trade in Services (GATS), claiming that online gambling violates the right of the US to protect public order and morals. While there is a process under Article XXI of the GATS for a member state to make such a modification, it appears to contempl ate compensation for a GATS member affected by the step. The US, however, argues that it has no obligation to compensate any government affected because online gambling was not specifically mentioned in the GATS negotiations. It is unlikely that the dispute will be settled quickly and raises basic procedural questions of interest to several other member countries. For a news article, visit: http://tinyurl.com/ywdqph For additional information on the topic from the WTO, see: http://www.wto.int/english/news_e/news07_e/dsb_22may07_e.htm Summary by: Oren Weichenberg