The Gambling compliance dispute is heating up on two fronts.
First, Antigua has now filed its panel request with the WTO. It expands slightly on its earlier consultations request, but is mostly the same.
Second, the U.S. House of Representatives is currently debating an internet gambling bill that will make U.S. legal prohibitions more stringent:
The legislation would clarify existing law to spell out that it is illegal to gamble online.
To enforce that ban, the bill would prohibit credit cards and other payment forms, such as electronic transfers, from being used to settle online wagers. It also would give law enforcement officials the authority to work with Internet providers to block access to gambling Web sites.
However, and this is a key issue for the WTO dispute, there appears to be an exception from the general prohibition for certain bets on horse racing:
The horse racing industry also supports the bill because of the exemption it would get. Betting operators would not be prohibited from any activity allowed under the Interstate Horseracing Act. That law written in the 1970s set up rules for interstate betting on racing. It was updated a few years ago to clarify that betting on horse racing over the Internet is allowed.
BUT, although the proposed statute may say one thing about this point, the Justice Department takes a different view:
The Justice Department has taken a different view on the legality of Internet betting on horse races. In a World Trade Organization case involving Antigua, the department said online betting on horse racing remains illegal under the 1961 Wire Act despite the existence of the more recently passed Interstate Horseracing Act.
The department hasn't actively enforced its stance, but observers say it is possible the agency and the racing industry could face off in court in the future.
UPDATE: The bill passed in the House. However, according to an AP news report, "passage isn't a safe bet in the Senate, where Republican leaders have not considered the measure a high priority."
