Washington - A World Trade Organization (WTO) panel has dealt the U.S. a setback in a case that sets U.S. interests in prohibiting Internet gambling against the financial interests of the island nation of Antigua and Barbuda, where many Web gambling firms have operations, Reuters reported.

The island nation brought a case before the WTO in 2003, claiming that U.S. laws against Internet gambling violated WTO accords, because of an exception for horse racing.

The WTO ruled in April 2005 on the narrower issue involving horse racing, conceding that U.S. law appeared to discriminate against overseas gambling operations, and said that changes should be made.

Gretchen Hamel, a spokesperson for the U.S. Trade Representative, told Reuters that the WTO panel said it "did not agree with the United States that we had taken the necessary steps to comply."

Hamel argued that the WTO ruling involves only "a narrow issue of federal law," and that the U.S. still has the opportunity to submit additional comments to the WTO before it issues its final report in March.

Related Links:
http://tinyurl.com/2leana (Reuters)
http://www.ustr.gov
http://www.wto.org