YouTube Case in Thailand Parallels US Online Gambling Policy

The United States announced Monday it would pursue a complaint against China for alleged trademark infringements with the WTO (World Trade Organization).  This announcement comes only one week after the WTO announced a landmark decision against the United States in regard to its law banning online gambling.

The WTO found that a recently past law that makes banking institutions in the United States responsible for monitoring and discouraging online gambling activity is in essence protectionism.  The World Trade Organization used strong words: "It (the US law prohibiting internet gambling) is illegal".  And yet the US government has not offered any indication towards repealing the act, signed into law this past October as an attachment to the unrelated Port Security measure. 

In order for the United States to be taken seriously by the World Trade Organization, China and - quite frankly - the rest of the world, they would have to do one of two things: Either abolish the aptly named but poorly applied Unlawful Internet Gaming Enforcement Act (UIGEA) altogether or they can simply remove certain - and some would argue ridiculous - exemptions.  More specifically, a carve-out for horse betting would have to be removed.  This is easier said than done since Arizona Senator Jon Kyl (R) bent over backwards to appease the powerful horse racing lobbyists.  No matter what choice, the US has no other option but to adhere to the WTO decision regarding internet gambling. 

Should the United States choose to ignore this decision, they won't stand a chance against China.  And of even more concern down the road is that Antigua, which filed the "online gambling" complaint against the US, could follow China's lead.

Burke Hansen, who has been following US internet gambling policies over these past few months for The Register, tells Gambling911.com that tiny Antigua doesn't have a leg to stand on in regard to imposing sanctions.  What they have is solid bargaining power.

"The significance of the WTO (decision) is that Antigua can suspend any of its own obligations - not just applying tariffs, but even suspending its IP obligations," says Hansen.  "Thus, they could start mass pirating of Microsoft software, Hollywood movies, etc. That's the only real leverage they have."

Of course, the Chinese, Europeans, and the Japanese have been watching this closely, he adds.

Thailand a Case Study on Where the US is Heading?

For those online gambling operators who think Asia is an "easy substitute" for the US market place, think again.  There is a reason why we haven't witnessed much success here.

Thailand serves as the perfect example and one that in some ways mimics US policy.

Youtube.com is banned in Thailand because they are letting some posters
put up Videos that violate the Thai law of not offending the
King, and this is simply because Thai residents are able to see them. 

Beginning last month, YouTube fans in Thailand found the site redirecting to MICT, the government agency responsible for Internet censorship in that country.

A Swiss native was recently sentenced to 10 years in jail for vandalizing portraits of the king while drunk.  Copycat incidents were later featured on YouTube.com. 

Many in Thailand consider this sentence too lenient. Youtube is owned by Google. Using current US Department of Justice logic applied to international gaming companies allowing US citizens to voluntarily spend their money with these companies (entirely outside the US) Thailand would be within their right to put out international arrest warrants for all shareholders, officers, directors and employees of Youtube and Google, not to mention possibly persons associated with companies conducting business with Google for aiding and abetting.

Did You Know?  In Thailand it is Illegal to..... Leave your house if you are not wearing underwear. You must wear a shirt while driving a car.   You must pay a fine of $600 in Thailand if you're caught throwing away chewed bubblegum on the sidewalk. If you do not pay the fine, you are jailed. No one may step on any of the nation's currency. Any man who "forcibly subdues and has sexual intercourse" with a female dog is merely charged with Cruelty to animals." The culprit is fined a small amount of money. If the female dog happens to be in heat, the fine is slightly higher.

How do you think your average American would feel about this?

"In online gaming the DoJ does exactly this and they do it for
moral reasons," says one online gambling operator who wished not to be identified out of fear he would be persecuted.  "Exactly the same logic the Thai government uses to justify their law and current actions."

Youtube is refusing to take the videos down, perhaps citing US freedom of expression laws.

"This suggests that they (YouTube) think that under US and International law the law of the US where they operate is the one that is applicable," explains the online gambling operator.  "Isn't that like an international gaming company citing the laws where they operate as justification for what they do?

The online gambling example has in fact been ratified by the recent WTO ruling.

But it is important to note that the US has been holding the former British CEO of internet gambling firm, BetonSports, without bail since July of last year. 

How the recent WTO decision will impact the case against David Carruthers (former CEO of BetonSports) remains to be seen.

Related Articles:

Internet Gambling: Stanford Group Gives Repeal a 10% Shot
Jon Kyl Celebrates Wall Street, London Stock Exchange Losses
Online Poker: George Bush and Family Values According to Jon Kyl
Barney Frank Confirms he Wants to Repeal UIGEA
Internet Gambling: UIGEA Reversal Not Likely
US Must Abide by WTO Online Gambling Decision
WTO Antigua Ruling Verses US: Online Gambling Bill Illegal
Antigua is the Smallest Country to Successfully Litigate WTO Case
Online Gambling: Checks Drawn to US Banks Will Become Thing of Past
Online Poker: George Bush and Family Values According to Jon Kyl

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Christopher Costigan, Gambling911.com

Originally published April 9, 2007 11:11 pm ET