Caribbean Challenge to US Online Casino Policy

The US government crusade against the online casino industry has been increasingly active in recent months, with a bill recently passing through the US House of Representatives which will largely prevent online casinos from targeting the US market, by making it illegal for credit card companies to allow payments to online gaming companies.

But the Caribbean has made a petition to the World Trade Organization (WTO), claiming that the US government is breaching international trade agreements. The online casino industry is worth billions of dollars, and the US market makes up an estimated 50% of the industry's customers.

The WTO has responded to the Caribbean petition and has informed that it will allocate a three-member panel to determine if the US government's efforts to restrict offshore internet gaming companies from accessing US customers violates international trade agreements.

Antigua is leading the challenge against the recent developments as its economy is heavily dependant on the online casino industry. Internet gambling became a key part of Antigua's economy during the last decade, when almost 100 online gaming companies began operations from the Caribbean island. These companies employ over 5,000 members of the local workforce.

Ronald M. Sanders is the Antiguan Chief Foreign Affairs Delegate and he says the US government's policy is draining a significant source of the Antiguan government's revenue. He stated: "We have a responsibility to our people to maintain their jobs and to defend our small and vulnerable economy."

The US government will now have to respond to the WTO in regards to the Caribbean challenge. Both sides will have 30 days to concur upon the appointees to the three-member board and the board's decision could be arrived at within 6 months of their first meeting. Any ruling by the WTO board would be compulsory, and could well force the US government to modify its trade practices in respect to online gambling.

Of course, any board decision can be appealed, so we may not see a final result for many months yet.

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