U.S. appeals WTO ban ruling

Friday, Jan. 7, 2005 | 11:07 a.m.

The U.S. appealed a World Trade Organization ruling that American legislation criminalizing online betting violates its own commitments to the WTO in a case that may shake up a global industry worth $6 billion.

Antigua, a Caribbean island nation of 67,800, won its WTO case against the U.S. in November. Internet companies in Antigua, which developed online gambling to boost a tourism-dependent economy rebuilding after a series of hurricanes, handle a quarter of online bets in the global industry.

The U.S., the world's biggest consumer of all forms of gambling and betting services -- worth $72 billion in 2003 -- has said the decision wouldn't force it to change its gambling rules and threatened to go so far as altering its commitments to the WTO to avoid any opening its borders to more gaming.

"The U.S. could consider changing its commitments, but the question is whether that would be easy or wise in the broader context" of rules governing commercial services, because it would reduce faith in the system, said Lode Van Den Hende, a trade lawyer at Herbert Smith in Brussels who represented Antigua in the case.