Is gambling Utah-bound?

WASHINGTON — Utah politicos have long been proud of the fact the state has no legal gambling of any kind — one of only two states in the country that can say so.

But those days could come to an end. A ruling in a legal dispute between the United States and the tiny island nation of Antigua could ultimately result in legalized Internet gambling in the Beehive State.

Racetracks and even casinos would likely not be far behind if the decision, expected in the next two weeks by the World Trade Organization, goes against the United States and if gaming companies decide to push the limits of free-trade agreements.

The state could do little, if anything, to stop them.

"That is a possibility," said Robert Stumberg, a professor at Georgetown University Law Center, "unless the United States renegotiates its present trade commitments on recreation and gambling services."

Antigua, which has replaced its sugar and banana economy with Internet gambling targeted primarily at Americans, complained to the WTO that the Americans were violating a 1993 trade agreement when the United States tried to stop Antigua from offering Internet gambling to American citizens. The trade agreement, signed by the United States, involved cross-border supply of gambling and betting services.

A WTO dispute panel ruled this past November that the United States was in violation of its international trade obligations. In other words, Antigua can't be stopped by the United States.

The WTO decision, in general terms, means that laws used by particular states to limit or forbid gambling are considered by the dispute panel as a violation of "market access" principles of the WTO's General Agreement on Trade in Services (GATS).

The U.S. appealed, and a ruling is expected by April 7.

"In trade-speak, Utah's prohibition amounts to the use of a zero-quota on the supply of Internet gambling services, and that's a violation of market access," said Peter Riggs, director of the Forum on Democracy and Trade.

If the WTO rules that the United States is seen as having a made a commitment on gambling, Riggs said, another part of the GATS agreement indicates the United States also made commitments to a "commercial presence."

"It's that commercial presence category which would allow foreign gambling companies to argue that they have a right to establish casinos, " Riggs said.

Rep. Sheryl Allen, R-Bountiful, has been watching what is commonly called the "Antigua case" in her role as chairwoman of the Committee on Economic Development and International Trade for the National Conference of State Legislators. She believes it has "very serious" ramifications not only for Utah's historic battle to keep gaming out but for the state to determine its own destiny.