As much as the U.S. Justice Department might like to assert jurisdiction all over the world, such interference understandably raises hackles abroad. Last month the World Trade Organization, in response to a complaint from the tiny Caribbean nation of Antigua and Barbuda, ruled that the U.S. is violating its free trade commitments by trying to block cross-border betting.
The WTO's arbitration panel apparently was convinced by Antigua and Barbuda's argument that the ban on Internet wagering is a trade barrier aimed at protecting the American gambling industry. "The U.S. says it wants open competition," said Antigua and Barbuda's WTO representative, "but it only wants free trade when it suits the U.S."
As if to confirm the double standard, U.S. Rep. Bob Goodlatte, R-Va., called the WTO ruling "appalling," saying, "It cannot be allowed to stand that another nation can impose its values on the U.S." What does Goodlatte think the U.S. is doing when it treats gambling operations that other countries consider legitimate businesses as criminal enterprises? By similar logic, American publishers could be prosecuted for posting material that a foreign government considered indecent or seditious.
In practice, of course, it's hard to prosecute casino operators based in other countries, which is why the Justice Department is instead going after Americans who sell them services. Given how broadly the government seems to be interpreting "aiding and abetting," it could bring charges against not just ad carriers but marketing consultants, banks, Internet service providers, telecommunications companies, computer professionals, and anyone else who facilitates online betting.
The upshot could be that both online gambling operations and their customers (who, depending upon the law in their state, may not be committing a crime by placing a bet) escape punishment, while the people who help bring them together are left holding the bag. Such a result might strike jurors as unfair. But given the way its crackdown has worked so far, the Justice Department probably won't have to worry about that.