The United States achieved partial victory in its World Trade Organization (WTO) appeal, Re United States: - Measures Affecting the Cross-Border Supply of Gambling and Betting Services. The WTO Appellate Body report, issued April 7, 2005, reversed the earlier finding of a WTO Panel, and found that the US legislation against gambling (see the Wire Act, the Travel Act and the Illegal Gambling Business Act) is necessary to protect public morals and order. However, the WTO Appellate Body also affirmed that the United States was in violation of its international obligations as the Interstate Horseracing Act applies remote betting rules differently as between foreign and domestic bookies. While Antigua also claims victory, Acting US Trade Representative Peter Allgeier asserted that limitations on Internet gambling can stand, provided that loopholes regarding horseracing are filled. Effectively, to the extent that Internet gambling is permitted domestically in the US, foreign entities should be permitted access on the same basis. The WTO Appellate Body Report is found at: http://www.wto.org/english/tratop_e/dispu_e/285abr_e.pdf For the US Trade Representative response, see: http://makeashorterlink.com/?G5D9466FA For the government of Antigua-Barbuda response, visit: http://www.antigua.gov.ag/news/news0405073.htm For the New York Times article, "US Limits on Internet Gambling Are Backed", see: http://www.nytimes.com/2005/04/08/technology/08internet.html For the Silicon Valley.com article "WTO issues mixed ruling on U.S. limits on Net Gambling", see: http://makeashorterlink.com/?A167219FA For an E-TIPSâ„¢ summary (Vol 2, NO 22, April 14, 2004) regarding the WTO Panel decision see: http://makeashorterlink.com/?R277259FA Summary by: Nicholas J. Whalen

E-TIPS® ISSUE

05 04 27

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