House Committee Approves Internet Gambling Bills that Ignore International Free Trade LawsOnline Gambling Bills Violate Recent WTO Ruling

St. Johns, Antigua (25 May 2006) – In defiance of a recent ruling of the World Trade Organization, the House Judiciary Committee today approved two Internet gambling bills that ignore the United States’ commitment to free and fair trade with other countries. The two bills are Rep. Bob Goodlatte's, R-Va., HR 4777, "the Internet Gambling Prohibition Act," and Rep. James Leach's, R-Iowa, HR 4411, "the Unlawful Internet Gambling Enforcement Act of 2006." Both bills will proceed to the full House of Representatives for further consideration.

These two Internet gambling bills were approved by the House Judiciary Committee over the objections of the twin-island nation of Antigua and Barbuda, who obtained a favorable ruling from the WTO last year in a high-profile trade dispute with the United States over Internet gambling. The House Judiciary Committee took brief note of Antigua’s written objections before proceeding to approve both bills.

The WTO ruled in April 2005 that United States’ laws that prohibit licensed and regulated Internet gambling operators from Antigua from providing online gambling services to United States residents violate the United States’ free trade commitments under the General Agreement on Trade in Services (GATS). The United States lost the WTO case because the United States has a longstanding policy of sanctioning online and telephone wagering on horse races. The WTO ruled it is a discriminatory trade practice for the United States to permit this form of remote gambling while trying to ban similar forms of online gambling offered by Antiguan operators.

A spokesperson for the Antigua Online Gaming Association (AOGA) expressed his disappointment in reaction to the House Judiciary Committee’s vote. “These bills directly contradict the United State’s promises about free trade to the rest of the world. Developing nations like Antigua were drawn into the WTO with assurances from the large economies that the WTO dispute resolution process is a two-way street. Today’s House Judiciary Committee action makes me really wonder if all the promises were true. They hardly took note of Antigua’s objections before voting to approve the bills.”

The AOGA is a trade group that represents the interests of the remote gaming industry licensed and regulated by the government of Antigua. It is a key supporter of the Antiguan government’s WTO case against the United States.