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The U.S. government's current attempts to outlaw Internet gambling on Web sites based offshore violate international trade rules, the World Trade Organization said on Thursday.

A WTO appeals board sided with the small island nations of Antigua and Barbuda, home to gambling Web sites that provide local jobs, and upheld an earlier decision by a WTO dispute resolution panel.

"This is a country-specific ruling," Mark Mendel, an attorney for Antigua, said in a statement. "But it may have far-reaching implications."

The U.S., however, claimed a modest victory on Thursday. If domestic laws are rewritten, the ruling provides sufficient leeway for federal gambling prohibitions to stand, said Peter Allgeier, the acting U.S. Trade Representative.

Depending on what happens next, search engines may begin to accept ads for offshore casinos, and Visa and Mastercard could be permitted to process international gaming-related transactions.

The ruling could lead to trade sanctions being imposed on the United States, if Congress does not change decades-old laws designed to regulate gambling through interstate telephone wires.

Click here for a PDF of the ruling.

Source: http://news.zdnet.com/2100-9588_22-5658636.html

This will have wide reaching effects for the online gambling industry. And is promising for casino/poker/wagering domain owners and affiliates.

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