241 Pizza

According to a 1991 list of industries that must be open to free trade, the recreation and entertainment sectors are fair game, the island state claimed. Moreover, Sir Ronald Sanders, Antigua's chief foreign affairs representative, and others have argued that it was no less than the Washington-based World Bank that advised Antigua to move into internet industries to diversify its fragile, tourism-based economy. Antiguan officials estimate that online casinos employ some 3,000.

"The impartial dispute resolution machinery of the WTO has functioned as expected," Mr Mendel said today.

"Justice has been served and potential compliance issues facing various US corporations and the US Department of Justice will now be resolved in a manner favourable to fair and responsible international commerce."

The Antiguans argued that it is inappropriate to treat businesses that conduct transactions online as if they are unequal to or somehow less credible than traditional brick-and-mortar operations. Additionally, it was underscored that it is inappropriate for the US government to assume an industry lacks integrity in the absence of objective evidence.

No US federal law prohibits gambling, which is regulated by state law. But in many states, gambling is banned or permitted with restrictions. Some site operators have been prosecuted under the 1961 Wire Communications Act, which was written to cover sports betting by telephone.

The US General Accounting Office has estimated there are 1,800 internet gambling operations. Virtually all of them are based outside of the United States.

The US Trade Representative office in Washington tonight claimed it would only need to clarify one narrow issue concerning internet gambling on horse racing, but that it would not be seeking law changes that might weaken US restrictions on internet gambling.

"US law stands. Internet gambling is not legal in the United States," a source in Washington said.

"The WTO said that we can use public order and public morals clauses to exclude this."

Antigua, however, maintains that aspects of US practice that discriminate against offshore operators will no longer be possible.

"Under no circumstances can it be said to be the case that US law will not have to change," said Mr Mendel.

"The US had to show that what they are doing is not discriminatory, and they failed to do that.

"We now expect that major internet search engines, including Google and Yahoo, financial institutions and credit card service providers will be required to accept advertising from Antiguan internet gaming sites as they do currently with US gaming interests, including hundreds of American casinos and state lotteries."

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