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US faces US$100 billion fine for web gaming ban

By Clement James
12 October 2007 07:22AM
Tags: us | faces | us | 100 | billion | fine | web | gaming | ban

A Brussels think-tank has accused the US government of reneging on commitments made to the World Trade Organisation (WTO) over internet gaming.

Panellists at a trade forum levelled harsh criticism at the US, focusing on a burgeoning trade clash between the US and Europe over internet gaming.

The forum believes that the US could be liable for up to US$100 billion in trade concessions to European industries after placing illegal discriminatory trade restrictions on European gaming operators.

The disputed concessions arise from Antigua's victory earlier this year when the WTO ruled that the US violated its treaty obligations by excluding online Antiguan gaming operators, while allowing domestic operators to offer various forms of online gaming.

Instead of complying with the ruling, the Bush administration withdrew the sizeable gambling industry from its free trade commitments.

As a result, all 151 WTO members are considering seeking compensation for the withdrawal equal to the size of the entire US land-based and online gaming market, estimated at nearly US$100 billion.

The European Union, along with India and five other countries, has filed notice that it intends to seek compensation.

"The US decision is a major threat to a rules-based international trading system," said Nao Matsukata, former director of policy planning for the Office of the US Trade Representative.

"If more countries follow the US lead and do the same thing, the entire WTO system could implode and that would be extremely dangerous for US economic interests and for free trade generally.

"Part of what makes the US such a formidable opponent in international negotiations is its credibility. That credibility is now at stake for the US government not just in the trade area but in foreign relations generally."

Lode Van Den Hende, a trade lawyer at Herbert Smith in Brussels, criticised the US for prosecuting foreign online gaming companies while letting domestic online gaming interests operate with impunity.

"This is absolute discrimination against foreign operators that the WTO has found to be illegal," he said.

"It is exactly the kind of practice that the WTO was set up to eliminate, and now the US is violating this very basic principle that it fought hard to put in place at the inception of the organisation."

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Thoughts on this article? Add a comment below.
Comments: 15
i agree... they want to join something abide by the rules, not do whatever you please... besides, its shows that usa only plays when it is in its favor
iTnews - comments icon Posted by raulOct 13, 2007 3:28 AM
I agree that if we are going to enter into the WTO we should follow the rules.

Therefore we should withdraw from the WTO and not recognize it as an entity.

iTnews - comments icon Posted by Redmonster13Oct 13, 2007 3:43 AM
Just say NO to the WTO!
This is yet another great reason why the US should NOT be in the WTO.
The WTO is just an end run around congress and a corporate handout at best.
The article fails to mention that both markets are NOT open to American online gambling and that in Antigua it was the rampant credit card fraud that got them in trouble in the first place.
Besides Europe can just take it out of what they owe the US in wartime loans.

iTnews - comments icon Posted by Joe BlackOct 13, 2007 3:53 AM
It would be terrific for the world if the US withdrew from the WTO!

Some outcomes: we could charge the US disproportionately to access our markets. We would develop industries that the US displaces - for instance computers. We would get all US based artists' music for free since it wouldn't be goverened by copyright treaties. We wouldn't have to worry about the US aiding farmers, and perhaps finally the 3rd world would be able to sell their produce. And that's just the beginning of the benefits to us!

I'm all for you daft US halfwits who advocate withdrawing. Please do us the favour!

Bob the Communist.

iTnews - comments icon Posted by Go WTO GoOct 13, 2007 4:10 AM
I don`t agree.Those people who is in favor of ban internet gambling need to be punished for their daily activities worst that I am punished that I can not have gambling business online and hire milions of people.WTO just follows old US pricipals before the internet.Since internet started it started new age and new US like communisto-dictators want to get involved in it.
iTnews - comments icon Posted by MikeOct 13, 2007 4:27 AM
Smug Yankee turds deserve what they get. How they spin the origional repression of their personal rights as a good idea now is beyond comprehension.
Home of the free and land of the arrogant. Mind control similar to 1984 seems to be the rule rather than the exception. Go WTO...

iTnews - comments icon Posted by CatsassOct 13, 2007 4:41 AM
I'm an american and I agree that the US should be fined and or banned from the WTO. We can't play by our own rules then the other countries must be strong enough to punish us for it. It would finally show the out-of-control Bush administration that there are limits and there are consequences to their actions. I hope the WTO has the nerve and strength to stand up and enforce its rules. If the US must feel some of the heat, there is no one to blame but the US govt. Bring it on. It can only help us right now. VOTE ANYTHING BUT REPUBLICAN!!!
iTnews - comments icon Posted by ChrisOct 13, 2007 4:56 AM
The WTO is a good thing, as much for the rest of the world as it is for us. We shouldn't leave the WTO and they shouldn't kick us out. How about we just stop acting like hypocritical and come up with a fair and consistent policy on gambling.
iTnews - comments icon Posted by patrickOct 13, 2007 6:40 AM

American addicted gamblers are ok to be pillaged and raped! The WTO is advocating for foreigners to take advantaged of addicts without bearing any responsibility for the consequence. Who is going to pay for billions of dollars that this victims will need in treatment for years to come. Why is anyone not advocating for the needs of millions of gamblers who became (addicted prior to the ban) and will become addicted gamblers because of this foreign companies who want web gambling sites accessible to Americans. And who are now using the WTO to force the U.S. Government to grant them access again without bearing any responsibility and accountability to provide for the addicted gamblers! Say not the WTO and yes to American Sovereignty!

iTnews - comments icon Posted by Tony MejiaOct 13, 2007 7:01 AM
If you talk about protecting your gamblers then also close USA casinos, horse betting, lotteries etc. After those are closed you can also close international gambling.

Ask any of those gamblers you want to protect whether they want international gambling closed? 95% will say no.

Why USA banned international gambling transactions? Two reasons. Someone needed votes of christian fundamentalists. And someone got greedy when profit was not going to their pockets.

My country has exact same problems. Some of our politicians rather want all gambling money go to company which they govern than to foreign countries. I sure hope USA gets fined so much that my tiny country does not dare to follow their example.

iTnews - comments icon Posted by AdsmiOct 13, 2007 7:16 AM
Yes, the U.S. should leave the WTO. No, it won't harm the U.S. There are other ways we can reach the same goals on our side without the WTO.
Internet gambling is difficult to regulate as well as difficult for consumers to verify its integrity. The U.S. has long regulated gambling, with good reason, and it is reasonable to prohibit internet gambling. The WTO should not be empowered to interfere with U.S. laws regarding its citizens or soverign territory. Since it does, the WTO should go.
Other countries which prefer to be ruled by a international body are of course welcome to join it.

iTnews - comments icon Posted by wmbismeOct 14, 2007 3:31 AM
I am not familiar enough with the situation between the US and the WTO to make a passionate argument either way.

What I am disgusted by is the way our gov't attempts to regulate my entertainment. Why should my enjoyment of online gambling be restricted? Why can't I, in the 'home of the free and the land of the brave,' pick and choose how I want to spend my money and with whom? This is one of the primary reasons, sadly, the Republicans will be voted out of office.

With apologies to the WTO, I can't know everything about everything; but I do know that I don't feel so free.

iTnews - comments icon Posted by DownToGreenOct 16, 2007 9:02 AM
I like to agree
iTnews - comments icon Posted by ReaderOct 16, 2007 5:30 PM
I find it sad that we even have this debate. Land of the free? No, it's the land of the tax. Had the USA found a way to tax all online gamers and its institutions it most likely would have went all out in support of it. I found it rather funny that the USA ban came just monthes befor several USA land casino's wanted approval for online gaming. Close the race tracks,close the casinos, stop the lotto and lotteries. Out law our churches, American leigons, and our VFW halls from having bingo... Maybe then I will believe that our government is trying to protect its people from an addiction. WTG! WTO! It is not differant than the usa saying that we can only fly on usa owned planes, buy USA made cars, tv's, computers, ect. The USA does not control the world nor do we make the world go round. Take away our freedom, take away what makes the USA a beautiful country.Bring it on WTO, its time to remind the USA that BUSH does not rule the world!
iTnews - comments icon Posted by American Jane DoeOct 18, 2007 10:10 PM
I agree with WTO! Why should congress deprive me of my choice to gamble online. I am disgusted with the way congress cavaliery just desides to take away my rights any old time they feel like it. At present I do not gamble online nor have I ever gambled online, but in the future I may deside to gamble online.
iTnews - comments icon Posted by David A. MoehrkeOct 26, 2007 7:10 AM
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