In a dispute between the Caribbean island of Antigua and Barbuda and the United States, the World Trade Organization stepped in to rule in favor of Antigua, who was protesting a U.S. block on online casino gambling.  According to the WTO, the American government's actions are in contrast to its agreement with Antigua and Barbuda.  The U.S., however, bases its claim in a public morals clause, which they say lets sovereign U.S. states impose their own laws towards online casinos.

As a result, online casinos are scrambling to look for other ways to offer themselves to U.S. players.  Their latest attempt is through what may be a small crack in the Central American Free Trade Agreement (CAFTA).  Costa Rica, specifically, is where these casino operators are considering setting up their website servers.  South America and the United States are tightly bound by this highly authoritative compact, which does not have a public morals clause that would let the U.S. regulate online casinos however they saw fit.

The U.S. Senate has already gotten wind of this and is no debating the issue on the Senate floor.  A spokesperson for the Forum on Democracy and Trade stated the issue has gone under the radar in the past, but will now be examined with a much closer look.  A senator from the state of Utah warned senators and trade groups to be careful and vigilant when dealing with online casinos, and that there should be nothing in the CAFTA that would permit internet betting sites to cater to U.S. players.

All individual state laws are not prone to any potential loopholes, according to trade officials.  Likewise, there is nothing that would keep online casinos from carrying out their own business.  It may be a standoff, so expect to see more court cases and rulings.

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