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Sunday, January 28, 2007

Antigua vs U.S. World Trade Organization Rules Against U.S. in Online Betting Case

Score one for David, the giant takes a stone!
Last year, Antigua filed a case with the WTO against the U.S. in relation to the U.S. blocking foreign companies from taking U.S.online bets on horseracing. The claim is based on the same law used to prohibit online gambling.
The WTO has now ruled in favor of Antigua. This opens the door for Antigua to impose trade sanctions. Previously they threatened to dishonor and no loner enforce U.S.copyright, trademark and patent laws as a retaliatory sanction. Can you imagine how cheap we will be able to get pirated software, music and other products soon due to the U.S.' war on online gambling?
A final ruling is expected in two weeks on the case, but this ruling is a huge blow. This could open the door to challenges to the U.S. internet gaming ban by other larger countries. The EU has already indicated they have an interest in the outcome of this case.
No doubt, with recent developments in the U.S. the EU will take an even greater interest. Just this week the Department of Justice issued subpoenas to the american branches of four foreign banks. These banks, including Deutschbank, were underwriters of several online gaming companies that went public on the London Stock Exchange.