Myth:
The United States should not be required to allow foreign gambling operators to access the American gambling market.

Fact:
The World Trade Organization ruled in 2005 that the United States is in violation of its international trade commitments by attempting to block foreign gambling operators from the Caribbean nation of Antigua and Barbuda from offering Internet and telephone gambling services to Americans. The United States is therefore required to allow access to Antigua operators and has until April 2006 to do so.

Details:
The United States embraces the concept of free trade between countries. As part of its free-trade philosophy, the United States has entered into a number of international trade agreements designed to promote free trade among nations. The United States is a leading advocate of free trade as well as observing an international system to fairly resolve trade disputes between nations. The United States utilizes the international free trade system to its benefit as the largest economy in the world. It is undisputed that the United States gets more out of the World Trade Organization and similar bodies than any other country.

In line with its free trade philosophy, the United States is a huge exporter of gambling goods and services. Many of the largest gaming companies in the world are of United States origin. Within the United States, some of these companies operate their own casinos as well as engage in other gaming-related activities such as developing, manufacturing and distributing gambling machines and providing technical and management support services to other service providers. These companies include Alliance Gaming Corporation, Harrah’s Entertainment Inc, International Game Technology, Park Place Entertainment, Boyd Gaming Corporation, Mandalay Resort Group, MGM Mirage Corporation and Trump Hotels and Casinos. All of these are publicly owned companies, traded on the New York Stock Exchange.

In 2003, the Government of Antigua and Barbuda brought a trade dispute before the World Trade Organization because the United States was seeking to block Antiguan providers from offering gambling services to Americans. In 2005, the WTO ruled in favor of Antigua. The ruling is complicated and often misunderstood. The effect of the ruling, however, is relatively simple. First, the WTO held that the United States had made a commitment to free trade in gambling and betting services under the General Agreement on Trade in Services (GATS). Second, the WTO held that the United States was violating this commitment because it allowed domestic Internet and telephone gambling on horse races under the Interstate Horseracing Act (IHA) and therefore could not legitimately block similar services being supplied from Antigua. The WTO’s final ruling was that the United States is bound to allow Antigua gambling operators to access the American market by April 2006.