WTO Gives U.S. More Time to Negotiate Over Online Gambling

October 24, 2007

The World Trade Organization and the members negotiating with the U.S. over online gambling gave an extension until December 14, 2007 for the U.S. to complete compensation settlement agreements with countries that have filed claims.

This summer, Antigua successfully challenged the U.S. online gambling regulations this pass summer. This forced the U.S. to withdraw online gambling from its world trade obligations and opened the door for other countries to file for damages. When there is a ratified trade agreement and a country rescinds that trade agreement, countries are allowed to file damages equal to their share of the lost market.

Those countries that filed, European Union, India, Antigua and Barbuda, Japan, Costa Rica, Macao, Canada and Australia are all looking to get some of the estimated $100 billion U.S. online gambling market.

As of the first deadline of October 22nd, the U.S. had failed to reach any agreement with any of the filing countries. The latest efforts with the European Union stalled out last month and Antigua seems to be opting for litigation for its $3.4 billion claim.

According to Gretchen Hamel, a spokesman for the US Trade Representative’s Office, “Each negotiation is proceeding at its own pace, and some are quite advanced. However, we have agreed to extend the negotiation period for all claimants.”

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