It didn't take long for the United States to react to last week's ruling by the WTO that the Americans have no right to ban cross border gambling on the Internet.

It didn't take long for the United States to react to last week's ruling by the WTO that the Americans have no right to ban cross border gambling on the Internet.

According to the Australian Financial Times, U.S. officials dismissed as "deeply flawed" the World Trade Organisation decision and said the federal government would appeal, that the decision set a new precedent for judicial activism at the WTO and could involve the 148-nation trade body in domestic issues over laws affecting moral issues such as gambling and prostitution.

The Administration "fundamentally rejects" the ruling that countries don't have an explicit right to limit services affecting public morals, a senior US trade official said. The official added that even if the ruling was upheld, it would not force any change in U.S. federal or state gambling rules.

The case has attracted widespread mainstream media coverage and interest around the world, because it is the first time that the WTO has taken up a dispute concerning internet commerce.

The WTO ruling last week favoured the tiny Caribbean nation of Antigua and Barbuda in its fight against the US over a 43-year-old law banning gambling payments across state lines. Antigua argued that the law violated a 1995 WTO agreement meant to open up parts of other countries' service sectors.

At most, Antigua would be allowed to impose punitive tariffs on US exports. Antigua claims the industry employs about 3000 people, but no figures exist on the amount of online gambling online that flows through the islands.

Antigua argued that the Clinton administration did not list online gambling as an area it wanted exempted from the 1995 WTO services agreement. US officials say that at the time, such gambling posed no threat. US trade officials were particularly alarmed over parts of the WTO ruling that asserted member states had to consult other countries before modifying laws that affect public morals.

News courtesy of Infopowa news service. 
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