Ethics Newsline®

GENEVA
The tiny island nation of Antigua and Barbuda last week bested the United States in a trade dispute over Internet gambling, sparking renewed debate over the ethics of online betting and U.S. trade policy.

The flare-up follows a ruling by the World Trade Organization (WTO), which sided with Antigua and Barbuda’s complaint that the current U.S. ban on Internet gambling violates WTO free-trade rules.

The ruling — interim and originally confidential — was disclosed by the small Caribbean state, moving the issue into the headlines and prompting U.S. promises to appeal, reported the New York Times.

Antigua and Barbuda claimed that the U.S. law banning online bets was protectionist — designed to insulate U.S. gaming operators from the stiff competition of foreign rivals operating over the Internet.

U.S. authorities say the law was designed to cut down on possible money laundering and online betting by minors, prosecuting U.S. banks and other finance firms that process the wagers.

Despite the law, millions of U.S. residents have found ways to gamble online, accounting for 65 percent to 75 percent of the $6 billion Internet gambling industry, according to the Interactive Gaming Council (IGC).

Last week’s ruling should force U.S. regulators to face that fact and begin installing effective regulations against abuses instead of believing an outright ban does the job, IGC deputy director Keith Furlong told the Agence France-Presse.

“Prohibiting credit cards creates other alternatives like anonymous e-cash, which causes more concerns like money laundering and underage gambling,” he said.

The WTO ruling, which is expected to become final in about a month, sparked outrage among some U.S. lawmakers, who said they will consider pushing for a U.S. pull-out from the trade group.

“It’s appalling,” Rep. Bob Goodlatte (R-Va.), told the Times. “It cannot be allowed to stand that another nation can impose its values on the U.S. and make it a trade issue.”

Sir Ronald Sanders, chief foreign affairs representative for Antigua and Barbuda, dismissed such pronouncements, saying the issue is not social policy but consistent and honest trade policies.

“The U.S. says it wants open competition,” Sanders contended to the Times. “But it only wants free trade when it suits the U.S.”

The WTO ruling could take longer than a year to become effective, though a promised appeal by the U.S. Trade Representative’s Office could push back that date even further, reported MSNBC.