The United States is nearing a final settlement with WTO trade partners to withdraw its gambling commitments under international trade treaties, but the talks are taking the trade negotiators into unknown territory as issues of retrospective amnesties are discussed.

The European Commission’s threat to launch a case at the WTO over the United States' possible prosecution of EU-based remote gambling firms is unlikely to worry trade officials in Washington DC, according to a leading trade policy expert.

The European association of state lotteries has expressed its concern that a European Commission report finding the United States’ stance on online gambling to be non-compliant with World Trade Organization rules could distort ongoing debates within the EU.

A World Trade Organisation Dispute Settlement Body (DSB) arbitration panel has concluded that the Caribbean twin-island nation of Antigua & Barbuda is entitled to trade concessions worth just US$21m per year from the United States because of the their non compliant restrictions applied against remote betting operators based in Antigua. The decision leaves the US in a stronger position as it seeks to re-write its WTO fair trade commitments as they apply to gambling.

Antigua’s WTO victory over the United States in the matter of provision of Internet gambling services may, in itself, count for little in the bigger picture.

Professor Joseph Kelly looks at the history of the prosecution of Internet gaming operators in the United States to analyse where the online industry stands in the wake of the UIGEA.

The United States took a giant leap forward in efforts to withdraw gambling services from its commitments to the WTO’s GATS treaty after agreeing a compensation package with the European Union on Monday. The withdrawal will prevent other countries from taking up a case won by Antigua at the WTO earlier this year but the remote gambling industry continues to feel that fair trade issues remain a strong argument in favour of regulation in the US.

The World Trade Organisation raised doubts over US remote gambling policy on Friday when it agreed with Antigua & Barbuda that Washington had failed to comply with a previous verdict delivered by the WTO in 2005.

Senior Democratic Congressman Barney Frank will introduce a bill to repeal the Unlawful Internet Gambling Enforcement Act (UIGEA) within the next month, according to a congressional aide.

The European Union has announced that it plans to seek compensation under GATS article 21 over the United States’ proposed amendment to its commitments on gambling.