Wednesday, October 04, 2006

Online gambling ban? or sham?

The news that the US Congress passed legislation prohibiting the use of credit cards, checks and electronic fund transfers for online gambling went around the globe and quickly hitting the market value of most online gambling companies, and it also hit the blogosphere. But, is it true that this legislation is the real thing and that everything is lost for the online gambling industry trying to operate with American customers? It seems that we have been here before and, again, that legislation can be understood as being not compliant with American obligations under WTO's GATS. Still is legal to bet in the US (as far as I remember both Nevada and Atlantic City are part of the US) and it can be argued that the new legislation represents an unjustified protectionist measure, as WTO Appelate Body decided on the same topic in Antigua v USA. Is this the same administration that tries to push for free markets everywhere?

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