Thursday, July 20, 2006

GENEVA, Switzerland (Reuters): The World Trade Organisation on Wednesday agreed to investigate accusations by Antigua and Barbuda that U.S. Internet gambling laws violate trade rules.

The tiny Caribbean state, population 67,000, says Washington has not complied with a 2005 WTO ruling that the United States discriminates between local and foreign operators.

"The United States has been passing legislation that is directly and unequivocally contrary to the ruling of the DSB," the twin island state said in a statement to the WTO's Dispute Settlement Body.

Washington rejects the accusation, saying it has brought its laws into line with the WTO findings. But it did not oppose Antigua and Barbuda's request for an investigation.

The new WTO panel will have 90 days to reach a verdict.

Antigua and Barbuda, with few natural resources, has sought to build up an Internet gambling industry to provide work for its young at a time when its tourist industry is in decline.

It argued that U.S. laws barring the placing of bets across state lines by electronic means were illegal in a case first brought to the Geneva-based WTO in 2003.

But last year's ruling by the WTO's Appellate Body, which both sides claimed as vindication, focused on the narrower issue of horse racing, saying that foreign betting operators appeared to suffer discrimination.

"The issue of compliance (with the ruling) was clear, limited and straightforward," the United States said in its statement to the dispute body. "We are now in a position to show that our prohibitions apply to both foreign and domestic suppliers (of gambling services)."

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