| According to the Wire Act, one is not permitted to | | | | convince foreign bodies such as the government of |
| make use of a wire transmission for the purpose of | | | | Antigua and Barbuda (a tiny country that processes |
| placing a bet. The Wire Act clearly states that | | | | 25% of online gambling transactions) that online |
| "Whoever being engaged in the business of betting | | | | gambling is illegal. |
| or wagering knowingly uses a wire communication | | | | Taking the matter all the way to the World Trade |
| facility for the transmission in interstate or foreign | | | | Organisation, the tiny island of Antigua and Barbuda |
| commerce of bets or wagers or information assisting | | | | argued that the United States trade policy does not |
| in the placing of bets or wagers on any sporting | | | | prohibit cross border gambling operations. It also |
| event or contest, or for the transmission of a wire | | | | argued that the U.S would be hypocritical to do |
| communication which entitles the recipient to receive | | | | otherwise since it wants to allow U.S. casinos to |
| money or credit as a result of bets or wagers, or for | | | | operate land-based and Internet-based units |
| information assisting in the placing of bets or wagers, | | | | overseas. |
| shall be fined under this title or imprisoned not more | | | | Meanwhile, the United States argued that regulation |
| than two years, or both." | | | | was not a viable alternative for prohibition due to five |
| While some may argue that the Wire Act pertains to | | | | major risks: underage gambling, compulsive gambling, |
| all forms of gambling, others believe that it only | | | | money laundering, possible abuse by organized crime, |
| refers to sports betting and wagering on sports | | | | and the risk of fraud. |
| events. Interpreting the Wire Act to mean that all | | | | On the 7th of April, 2005, the World Trade |
| forms of online gambling are illegal, many banks and | | | | Organization ruled in favor of Antigua and Barbuda. |
| financial institutions decided to block online gambling | | | | "The WTO has now found U.S. prohibitions on |
| transactions that make use of credit cards. Other | | | | Internet gambling improper and discriminatory under |
| online financial services such as ceased to process | | | | global trade rules," Paulsen said. "This WTO ruling |
| gambling related transactions and most of the major | | | | means the U.S. will need to regulate, rather than |
| search engines such as and stopped accepting | | | | prohibit Internet gaming. It's clear that this will require |
| gambling relatedadvertisements. | | | | Internet gaming companies seeking to do business |
| Although the Department of Justice managed to put | | | | with U.S. consumers to have adequate protections |
| a significant dent in the advertising and banking | | | | for consumers in place, to deal with such problems as |
| operations of the online gambling industry in the | | | | the risk of underage gaming, fraud, and money |
| United States, there are currently thousands of online | | | | laundering. The good news is that there are now |
| gambling websites operating legally outside the U.S. | | | | solutions in the payment system to do just that." |
| Furthermore, since most of the online casinos accept | | | | Kobus Paulsen, CEO of the UC Group, said on April 7, |
| numerous offline and online payment methods, one | | | | 2005. |
| does not require a credit card to play at an online | | | | Thus according to the World Trade Organisation, |
| casino. | | | | gambling at licensed online casinos and sportsbooks is |
| According the latest online gambling figures, most | | | | not illegal. Rather than waging war against the online |
| online casino players are from the United States, and | | | | gambling industry, governmental bodies hostile to |
| the online gambling industry is continuing to grow at a | | | | online gambling should work towards the regulation |
| phenomenal rate from 1.5 billion dollars in 2000 to a | | | | and taxation of the online gambling industry, while |
| projected growth estimate of well over 10 billion | | | | searching for possible solutions regarding the |
| dollars for the year 2005. In order for the | | | | problems of underage gambling, compulsive gambling, |
| Department of Justice to make a truly serious dent | | | | money laundering, possible abuse by organized crime, |
| in the online gambling industry, they would need to | | | | and the risk of fraud. |