The US formally stated their position. They have posted a notice with the WTO that they are in compliance and they don't need to do anything. Unfortunately for the horse racing industry, they threw them under the bus to try and solve their problem. I don't think they did, but they threw them under the wheels anyway.
Since the only specific act cited in the Appellate Body Opinion regarding the US's moral defense was the IHA, the USTR now says that the IHA does NOT make interstate horse wagering legal. In other words, all of those sites that allow you to bet on horses are breakling the law. I'm sure there will be some phones ringing off the hook when the NTRA and the racing lobby catch wind of this.
Here's the official document from the US:
WORLD TRADE
ORGANIZATION WT/DS285/15/Add.1
11 April 2006 (06-1707) Original: English
UNITED STATES – MEASURES AFFECTING THE CROSS-BORDER SUPPLY?OF GAMBLING AND BETTING SERVICES
Status Report by the United States
Addendum
The following communication, dated 10 April 2006, from the delegation of the United States to the Chairman of the Dispute Settlement Body, is circulated pursuant to Article*21.6 of the DSU.
_______________
Status Report Regarding Implementation of the
DSB Recommendations and Rulings in the Dispute
United States – Measures Affecting the Cross-Border Supply
of Gambling and Betting Services
(WT/DS285)
The United States submits this report in accordance with Article 21.6 of the Understanding on Rules and Procedures Governing the Settlement of Disputes.
On 20 April 2005, the Dispute Settlement Body ("DSB") adopted its recommendations and rulings in United States – Measures Affecting the Cross?Border Supply of Gambling and Betting Services (WT/DS285). At the following DSB meeting on 19 May 2005, the United States informed the DSB of its intention to implement the recommendations and rulings of the DSB in connection with this matter. On 19 August 2005, the DSU Article 21.3(c) arbitrator appointed by the Director General determined that the reasonable period of time for implementation will expire on 3 April 2006.
On 5 April 2006, the US Department of Justice confirmed the position of the US Government regarding remote gambling on horse racing in testimony before a subcommittee of the US House of Representatives. The Department of Justice stated that:
The Department of Justice views the existing criminal statutes as prohibiting the interstate transmission of bets or wagers, including wagers on horse races. The Department is currently undertaking a civil investigation relating to a potential violation of law regarding this activity. We have previously stated that we do not believe that the Interstate Horse Racing Act, 15 U.S.C. §§ 3001-3007, amended the existing criminal statutes.
In view of these circumstances, the United States is in compliance with the recommendations and rulings of the DSB in this dispute.
__________
WT/DS285/15/Add.1?Page PAGE 2
WT/DS285/15/Add.1? Page PAGE 1
Since the only specific act cited in the Appellate Body Opinion regarding the US's moral defense was the IHA, the USTR now says that the IHA does NOT make interstate horse wagering legal. In other words, all of those sites that allow you to bet on horses are breakling the law. I'm sure there will be some phones ringing off the hook when the NTRA and the racing lobby catch wind of this.
Here's the official document from the US:
WORLD TRADE
ORGANIZATION WT/DS285/15/Add.1
11 April 2006 (06-1707) Original: English
UNITED STATES – MEASURES AFFECTING THE CROSS-BORDER SUPPLY?OF GAMBLING AND BETTING SERVICES
Status Report by the United States
Addendum
The following communication, dated 10 April 2006, from the delegation of the United States to the Chairman of the Dispute Settlement Body, is circulated pursuant to Article*21.6 of the DSU.
_______________
Status Report Regarding Implementation of the
DSB Recommendations and Rulings in the Dispute
United States – Measures Affecting the Cross-Border Supply
of Gambling and Betting Services
(WT/DS285)
The United States submits this report in accordance with Article 21.6 of the Understanding on Rules and Procedures Governing the Settlement of Disputes.
On 20 April 2005, the Dispute Settlement Body ("DSB") adopted its recommendations and rulings in United States – Measures Affecting the Cross?Border Supply of Gambling and Betting Services (WT/DS285). At the following DSB meeting on 19 May 2005, the United States informed the DSB of its intention to implement the recommendations and rulings of the DSB in connection with this matter. On 19 August 2005, the DSU Article 21.3(c) arbitrator appointed by the Director General determined that the reasonable period of time for implementation will expire on 3 April 2006.
On 5 April 2006, the US Department of Justice confirmed the position of the US Government regarding remote gambling on horse racing in testimony before a subcommittee of the US House of Representatives. The Department of Justice stated that:
The Department of Justice views the existing criminal statutes as prohibiting the interstate transmission of bets or wagers, including wagers on horse races. The Department is currently undertaking a civil investigation relating to a potential violation of law regarding this activity. We have previously stated that we do not believe that the Interstate Horse Racing Act, 15 U.S.C. §§ 3001-3007, amended the existing criminal statutes.
In view of these circumstances, the United States is in compliance with the recommendations and rulings of the DSB in this dispute.
__________
WT/DS285/15/Add.1?Page PAGE 2
WT/DS285/15/Add.1? Page PAGE 1
