High Noon on Global Gambling Board

It all began in October. Last fall, US President George W. Bush signed a measure into law that changed not only the law concerning online gambling by Americans, it also changed the entire industry, business and millions of peoples pastime hobbies. By prohibiting American financial institutions (banks, credit card companies, services designed particularly for this cause) from processing payments to online gambling businesses abroad. The aftermath we already know of, having tried to figure out what it means to the individual gambler at the end of the day.

Then in March a surprising ruling by the World Trade Organization seemed to reveal the light at the end of the tunnel. The issue of the American policy regarding the international online gambling market, i.e. shutting down competition from companies based overseas, was brought to a special WTO panel by the government of a Caribbean country, Antigua.

The island has been the host of online gambling companies that based a large part of their operations serving American gamblers. They were directly hurt by the US policy. The WTO, by ruling in their favor, claiming the US ban was in violation of free trade agreements, accepted the Antiguan argument. The clause under which the argument was made is the same one that set up the WTO in the first place, in 1994, signifying its central importance when concerning such matters of free trade.

The stick, which the Antiguan government holds is not of much value. If the US does not comply with the ruling, the little Caribbean country may impose trade restrictions of its own. A comparison of the two countries economies would immediately reveal how fruitless this may be an act.

The ruling and the US response, however, are still potentially of monumental consequences. The precedent set by the WTO ruling may invite other countries, with larger economies, namely the European Union members, to follow suit. In that case the US stands losing the battle if it does not reverse the ruling or relax restrictions. The world thus awaits the US response to come sometime soon.