Time to Regulate Internet Gambling says Newsday- Online Poker Gains another Ally

This week another US mainstream media, Newsday, published an article chastising the United States for not complying with two World Trade Organization (WTO) rulings regarding US protectionist behavior towards offshore online poker and online gambling firms. They also strongly recommended that the US government regulate, not ban, poker and gambling on the Internet.

Congress should accept WTO rulings and, "replace the ban with regulation designed to ensure the financial integrity of gaming in cyberspace, to screen out minors and to make sure that the United States gets its cut in taxes," the editorial states.

It recommends that, "legislation introduced by Rep. Barney Frank (D-Mass.) provides a good jumping-off point for debate in Congress."

Newsday, which serves Long Island and New York City areas, went through a succinct history of the WTO case in their article: Antigua "initiated a trade complaint in 2003, claiming that the U.S. ban violates its rights as a member of the global free trade community policed by the WTO. It won in 2004; again in 2005, after the United States appealed; and the ruling was reaffirmed yet again this year."

In the end, after always ruling in favor of the tiny twin Caribbean island nation of Antigua and Barbuda, "All that's left is for the WTO to decide what damages to impose."

The WTO cannot be seen to aggressively enforce trade rules "against small nations but timidly allows the world's economic powerhouse to skate." So not awarding full damages puts WTO's integrity on the line.

Newsday also points out that the "integrity of the United States is also at issue. This country can't respect trade rules that benefit us and ignore those that don't without undermining valuable free trade agreements." This is very germane given the current US WTO dispute with China.

The article says there may be only two choices for Washington: "Allow Americans to wager online with offshore casinos or ban all Internet gambling- including popular pastimes like fantasy sports leagues and off-track betting on horses, and maybe even the sale of lottery tickets online."

"Washington should respect the WTO ruling, permit Internet casino gambling and do all it can to protect American consumers," the editorial says in closing.

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