World Trade Organisation Rules in Favour of Antigua
The WTO ruled in favour of Antigua in a hearing on April 7, finding US prohibitions on Internet gambling to be improper and discriminatory under global trade rules.
The UC Group, a UK based company which provides payment services for a number of Internet business sectors, including Internet gaming, has declared that the Antigua win is likely to pave the way forward for regulation in the US.
‘Today's victory for Antigua in its case against the United States in the World Trade Organization (WTO) seeking to strike down US prohibitions on Internet Gaming provides the chance for the US and gaming companies to develop strategies to meet US concerns about the risk of money laundering and fraud in this multi-billion dollar online sector,’ Kobus Paulsen, CEO of the UC Group, said today.
During the proceedings in the WTO, the US argued that regulation was not a viable alternative for prohibition due to five major risks: underage gambling, compulsive gambling, money laundering, possible abuse by organized crime, and the risk of fraud.
‘The WTO has now found US prohibitions on Internet gambling improper and discriminatory under global trade rules,’ Paulsen said. ‘This WTO ruling means the US will need to regulate, rather than prohibit Internet gaming. It's clear that this will require Internet gaming companies seeking to do business with US consumers to have adequate protections for consumers in place, to deal with such problems as the risk of underage gaming, fraud, and money laundering. The good news is that there are now solutions in the payment system to do just that.’