US To Appeal WTO Ruling On Foreign Internet Gambling Operations

by Amanda Banks, Tax-News.com, London

04 January 2005

The United States government is preparing to file an appeal against last year's WTO ruling in favour of Antigua & Barbuda concerning the banning by the US Congress of foreign internet gambling operations, a racing industry news source has reported.

According to the Thoroughbred Times, the appeal will be filed later this month, and is being supported by the Federation of Horseracing Authorities (IFHA) which fears a favourable ruling for the Caribbean jurisdiction will damage the integrity of betting polices and rules in the US.

The report stated:

“The IFHA is concerned that betting operators based in Antigua and Barbuda take bets on horse races without having the express agreement of the racing authority staging those events or the rights of the holder of racing data and pictures.”

Antigua and Barbuda initially brought the case to the WTO in 2003, arguing that by restricting the internet gambling activities of US citizens, the United States was unfairly damaging the jurisdiction's economy, in contravention of the General Agreement on Trade and Services (GATS).

In a preliminary ruling released last November, the WTO found in favour of Antigua after the sides failed to reach a negotiated settlement.

An appellate body of seven legal experts will consider the US submission before a final decision is issued, expected late in the spring of 2005.

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