Antigua & Barbuda estimates its online gaming sector at $US130 million

A WTO panel said the US had failed to comply with a previous ruling ordering it to open up the multi-billion dollar cross-border internet gaming industry.

At issue was an April 2005 verdict on U.S. moves against the online betting industry which the WTO said discriminated against Antigua and Barbuda.

The two-island nation argued that the U.S. measures hurt them while leaving some American domestic operators alone.

The Antigua and Barbuda government says the country was in danger of losing much of the 130 million US dollar online gambling industry it had built up in efforts to diversify its economy.

Since the original WTO ruling, the U.S. Congress has passed additional legislation to ban online gaming.

This fresh ruling followed a renewed challenge from St. John's, which said Washington had not brought its legislation into line.

The US claimed victory in the WTO's initial ruling because the body recognised its right to prevent offshore betting as a means of protecting public order and public morals.

Washington seems worried

We are currently reviewing our options.   Gretchen Hamel, USTR rep

An official of the U.S. Trade Representative's office in
Washington said the United States was mulling its next step.

"We are currently reviewing our options," USTR spokeswoman
Gretchen Hamel said.

"It is important to emphasize, however, that nothing in the
panel's report undermines the broad, favourable results that the
United States obtained from the WTO in April 2005."

St John's is jubilant

Antigua & Barbuda on the other hand is delighted with this ruling.

The country's Finance Minister Errol Cort said in a statement that the decision vindicated all that his country had been saying for years about the discriminatory practices of the United States.

He said he looked forward to the United States opening its gaming markets.

This is a smashing success for Antigua.   John W Ashe, Antigua's WTO representative

Equally pleased with the outcome is John W. Ashe, Antigua's ambassador to the WTO.

"This is a smashing success for Antigua in every possible way.

"The report will sweep away any lingering doubt that Antigua has obtained a clear and convincing win over the United
States in this matter," he said.

But some analysts say it appears unlikely that the US will ease access to companies with servers licensed in St. John's.

This would open the US to possible commercial sanctions but Antigua & Barbuda would prefer a negotiated settlement, according to the country's lawyer, Mark Mendel.