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Alan Marzelli

WTO Dispute:

Antigua vs. United States

WTO Dispute:

Antigua vs. United States

WTO Dispute:

Antigua vs. United States

Interstate Horseracing
Act (IHA)

WTO Compliance

WTO Compliance

WTO Compliance

Withdrawal of Commitment:

If U.S. is unable to
comply:

Real Concern for U.S.:

"Alan Marzelli"

Alan
Marzelli

President & Chief Operating Officer

The
Jockey Club

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Alan Marzelli

President & Chief Operating
Officer

The Jockey Club

WTO Dispute:

Antigua vs. United States

WTO Dispute:

Antigua vs. United States

United States is now the ONLY
country that has agreed to free trade in gaming services

U.S.: Pubic Morals clause
should supersede inadvertent agreement to free trade in the Gaming Services
category

WTO Dispute:

Antigua vs. United States

U.S.: Since Internet gambling
by U.S. residents is prohibited by law, commitment to free trade in gaming
services can’t be enforced

WTO Appellate body:  U.S. can’t cite Public Morals clause since
Internet gambling on horseracing is permissible under Interstate Horseracing
Act

Interstate Horseracing
Act (IHA)

Governs how U.S. residents bet
on domestic horseracing

Sanctions account wagering,
telephone wagering, Internet wagering (if authorized by states where bets are
made)

WTO Compliance

Option 1:  Repeal / amend IHA

U.S. racing industry would
vigorously oppose

Internet betting:

Growing 40% per year

Now accounts for more than 20%
of total U.S. handle

WTO Compliance

Option 2:  Open U.S. market to all gaming

Legislation to repeal ALL
federal and state restrictions on Internet gaming

Unlikely because individual
states have long retained authority over gaming activities within their
borders

WTO Compliance

Option 3: Withdraw gaming
services commitment

Supported by U.S. horseracing
industry

Recognizes authority of federal
and state government

Consistent with “Good Neighbor”
policy

Withdrawal of Commitment:

Cost to U.S. could be
significant

Possible actions:

New substitute commitment

Few available – none equal in
value to Internet gaming

Compensation

If U.S. is unable to
comply:

U.S., Antigua agree to
extension or other resolution

Antigua issues trade sanctions
or levies on U.S. goods imported into Antigua

Real Concern for U.S.:

Precedent that could be set by
Antigua case

Other WTO members could bring
similar lawsuits against U.S.

Impact on U.S. and
international economies could be significant

"Alan Marzelli"

Alan Marzelli

President & Chief Operating
Officer

The Jockey Club

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