Is The WTO v US Battle Really Helping?
After news that Antigua has managed to secure agreement for loses incurred by the “illegal” withdrawal of online gambling facilities in the US, there is concern that the tensions between the World Trade Organisation and the US may well scupper any hopes of an end to the US ban. But why?
Even though the US authorities have agreed in private that their ban is illegal there are no plans to lift the barriers. It seems that the US have not appreciated being hauled in front of the WTO to explain their actions, and this has forced both parties to dig their heels in. While Antigua had originally claimed $3.4 billion per annum in compensation from the US, they have “only” ended up with $21 million a year – a substantial difference to say the least!
The WTO are still pursing the US authorities on behalf of other countries throughout the world, with European counterparts knocking hard on the door for compensation. However, it seems that while the US were “sympathetic” to the Antiguan claim they will not be so forthcoming with claims from European companies. This has the potential to blow into a full scale war and there are already rumours of further sanctions against the US in a tit for tat series of actions. Away from the main headlines the likelihood of the US authorities lifting the ban seems further away than ever, and while many had suggested that recent events were just sabre rattling there seems to be more to it.
The US authorities may well privately be regretting their move to ban online gaming, but in public there have been very few cracks in this policy. As we approach the end of the US presidential elections it seems highly unlikely that the new president would want to rock the boat by suggesting a lifting of the ban, for fear of upsetting the very strong religious groups in the US. Now that would be a gamble!