U.S. To Keep Internet Gambling Ban

The United States will maintain a ban on Internet gambling services despite an adverse World Trade Organization ruling, meaning other WTO members can seek potential damages at the WTO. Deputy U.S. Trade Representative John Veroneau said the United States did not believe there was any basis for other countries to receive compensation. Even though U.S. law has banned interstate gambling for decades, the United States failed to make clear its commitments "did not extend to gambling," Veroneau said. Having exhausted other options to fight the case, the United States will exercise a rarely used right under WTO rules to modify its 14-year-old services commitments and explicitly exclude gambling, Veroneau said.

A WTO decision in March said the United States had failed to comply with an April 2005 ruling against a portion of its ban having to do with online gambling on horse racing. In fact, the U.S. Congress moved in the opposite direction last year and passed additional legislation to ban online gambling by making it illegal for banks and credit card companies to make payments to online gambling sites. The United States believes it should not have to pay compensation because countries did not bargain for access to the U.S. gambling market as part of world trade talks in the early 1990s, Veroneau said. Also, the long-standing U.S. ban on interstate gambling makes it "nonsensical" for countries to believe the United States was opening that market, even though it did not explicitly say that it was not, Veroneau said.

News source: InformationWeek

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34 Comments

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How are they going to prove damages in a market that hasn't been open anyway? You can't say "Oh, we certainly would have made $1 Trillion from legal online gambling from the USA for the past 15 years..."

I am sure there is a small Island of the coast of the West Indies welcoming all the high rollers to live if they like online gambling and live in the USA.

Great. Instead of government-regulated online casinos working with legitimate payment providers, people are going to turn to extremely iffy "under the radar" sites and payment providers who probably care way less about fraud than Visa and Mastercard.

Banning online gambling is like banning drugs. It doesn't work, but it sure makes us look morally right and ensures those who do partake can't do so in a safe, regulated environment.

I'm rather astonished actually nobody crossed the MMORPG tendency to assign real-world values to online credit with a gambling site. The site has no official way to get money in and out, and it's all for credits, but people will buy and sell credits on the outside marketplace.

Our country, our rules...if you don't like them, LEAVE.
I sure don't see a lot of Americans risking their lives to paddle across the pond to live in some other country.
Seems like everyone is killing themselves trying to get here. Hummmmm wonder why?

naap51stang said,
Our country, our rules...if you don't like them, LEAVE.
I sure don't see a lot of Americans risking their lives to paddle across the pond to live in some other country.
Seems like everyone is killing themselves trying to get here. Hummmmm wonder why?

Well thats because they just walk across the border to Canada its allot easier no paddling or life risking involved. Then they can gamble online here to there hearts content, while smoking cubans.

spetz said,

Well thats because they just walk across the border to Canada its allot easier no paddling or life risking involved. Then they can gamble online here to there hearts content, while smoking cubans.


Your comment sums it up. If you don't like it, go somewhere else where you can do it.
And while you're at it, give up half your income. You can do it, eh.

Then they can gamble online here to there hearts content, while smoking cubans.

Now that's hitting below the belt! Alas, it's all too true.

I really hate all the hoops I have to jump through to get a Monte Cristo No. 2 Especial into this country!

naap51stang said,
Our country, our rules...if you don't like them, LEAVE.

You didn't read the article did you? The article isn't even about people in the US. It's about people outside the US upset because they feel the US is violating international trade agreements (again). Patriotism is good, but don't be so patriotic that logic can't make it into your head.

another interesting article.

http://www.eog.com/news/full-article.aspx?id=23402

well at least we now know they should not have jurisdiction over the companies offshore...as they aren't governed by the "world police" laws in the U.S.

The WTO is another smoke and mirror operation just like NAFTA which only proves even more that the U.S. only wants to be the only money maker in town and it's illegal for anyone else to take a piece of the pie. Anyway's they are only making themselves look worse through the eyes of the rest of the world... their reputation is only getting even more damaged.... no one will trust their intentions when it comes to global business fairness.


on that note:

COME ON CHINA!!!....exercise your power and prove there's more than one big bully in town. lol

OH CANADA!! lol

Did you even read the article? Online gambling is illegal in the US, other countries want compensation for lost revenue under a trade agreement.

Tech001101 said,
another interesting article.

http://www.eog.com/news/full-article.aspx?id=23402

well at least we now know they should not have jurisdiction over the companies offshore...as they aren't governed by the "world police" laws in the U.S.

The WTO is another smoke and mirror operation just like NAFTA which only proves even more that the U.S. only wants to be the only money maker in town and it's illegal for anyone else to take a piece of the pie. Anyway's they are only making themselves look worse through the eyes of the rest of the world... their reputation is only getting even more damaged.... no one will trust their intentions when it comes to global business fairness.


on that note:

COME ON CHINA!!!....exercise your power and prove there's more than one big bully in town. lol

OH CANADA!! lol


You are kidding, right?

The US is not claiming jurisdiction over offshore companies. They are claiming jurisdiction over what happens WITHIN the US.

Get your arguments straight.

And I agree- Oh Canada! LOL.

I think people are missing the point. This is not about lost freedoms. People can gamble here. They're saying that other countries can request compensation for 'lost revenue' since the other countries cannot offer gambling services to the US. Just another way for other countries to get into our pockets.

tao muon said,
I think people are missing the point. This is not about lost freedoms. People can gamble here. They're saying that other countries can request compensation for 'lost revenue' since the other countries cannot offer gambling services to the US. Just another way for other countries to get into our pockets.


last time I checked we still make the final decision if we want to entertain ourselves gambling online... you made it sound like they are demanding we gamble with them online at gun point...and sticking their hands in our pockets for the money to place a bet.

and the stats show that people do want to have the ease of doing it online rather than paying a plane ticket to travel to Vegas, get a hotel room, get a taxi and then sit at a table all uptight thinking the cameras watching us like hawks.

Tech001101 said,


last time I checked we still make the final decision if we want to entertain ourselves gambling online... you made it sound like they are demanding we gamble with them online at gun point...and sticking their hands in our pockets for the money to place a bet.

and the stats show that people do want to have the ease of doing it online rather than paying a plane ticket to travel to Vegas, get a hotel room, get a taxi and then sit at a table all uptight thinking the cameras watching us like hawks.


I didn't make it sound like any such thing. Re-read what I wrote and reply once you understand it. Did I say 'gun point'?... Didn't think so. What I implied was that the WTO has it set up where countries that allow online gambling can sue the US for lost profits simply because US laws do not allow it. The WTO action is like allowing Nevada suing California because gamblers can't place phone bets and wants California to pay them for lost income.

However, I agree that people who want to gamble would like the convenience of doing it online and should have the option. Maybe they should be able to. So maybe the states should allow online gambling at sites hosted within the state for their residents? (yeah, and good luck enforcing it.)

Otherwise the US has laws prohibiting inter-state gambling which covers transactions that cross state lines. For instance placing a phone bet in Los Vegas from Los Angeles is illegal. Now, since the Internet traffic will cross state lines those transactions are illegal by proxy. If the US allows Internet gambling they will have to allow inter-state gambling as well, which without audit controls provides another vector for illicit activities and

All this kind of legislation does is encourage crime. Gambling will go underground and the US will still lose out on the taxes, only it'll get more violence, drug-smuggling, prostitution, and other related crimes along with the illegal gambling.

Plus you'll be criminalizing the gamblers, even though all they wanted to originally was gamble, and not to be involved in organized crime.

Most small time gamblers I know are criminal of some sorts. First, they lost most of their money though online gambling (it's a lot easier to gamble online than going to a casino). Then, they start breaking into cars stealling stuff to sell so they can gamble some more. It's a bad addiction.

npe said,
Most small time gamblers I know are criminal of some sorts.

So, because you (allegedly) know someone that can't handle gambling, it should remain totally illegal for everyone?

Does this also mean that because people occasionally stab other people with steak knifes, anyone who uses a steak knife should be considered a criminal of some sort and that steak knives should be universally outlawed?

Hey, cars are a big killer! How about we outlaw them too! Or maybe we should just outlaw pedestrians crossing streets for their own safety!

theyarecomingforyou said,
So you're free to play the lottery but not gamble online? The US really is backwards sometimes.

No ****. Did it take you awhile to figure that one out?

U.S. law has banned interstate gambling for decades

That's all that needs to be said, nothing more to see here.

All those taxes I guess the USA will lose.

I don't agree with gambling myself, pointless exercise, however, it's a money spinner for some.