WASHINGTON -- July 30, 2007 -- A leading trade policy expert called for the U.S. to speedily resolve its trade agreement violation around Internet gambling with the World Trade Organization as the dispute could damage the WTO's credibility and force the U.S. to pay billions in compensation.

The WTO's ruling in March, involving a dispute filed by the Caribbean island nations of Antigua and Barbuda, found that the U.S. unfairly prohibits foreign Internet gambling operators from accessing the U.S. market, while allowing domestic companies to legally accept online bets.

The United States Trade Representative announced in May that the U.S. would withdraw its commitments to the WTO to open its markets
to offshore-based internet gambling operators.

The U.S. "response, and again I use that word loosely, is unprecedented
in dispute settlement history," according to Sallie James, policy analyst
at the Cato Institute's Center for Trade Policy Studies. James spoke at a
recent Cato Institute Policy Forum in Washington, D.C., about America's
high-stakes response to the WTO Internet gambling dispute.

Withdrawing commitments from the WTO would be unique in the organization's history and would also be extremely damaging to its credibility. These actions by the U.S. are an affront to other WTO members and could damage the WTO, James stated.

Currently, the European Union (representing 27 member states), India,
Japan, Australia, Canada, Costa Rica, Macao, and CARICOM (representing 15 Caribbean nations) are also seeking compensation from the U.S. for economic injury resulting from this trade agreement violation. If the U.S. continues to violate WTO obligations, it could be subject to pay Antigua and Barbuda the $3.4 billion dollars that they demand and tens of billions of dollars
to other countries.

Another solution to the U.S. noncompliance with the WTO obligations may be found in the Internet Gambling Regulation and Enforcement Act that was introduced in the spring by U.S. Representative Barney Frank. This bill,
once enacted, would bring the U.S. into compliance with WTO requirements by regulating Internet gambling and creating a level playing field among
domestic and foreign Internet gambling operators.

"The U.S. should act now to address this international trade violation
and end its prohibition of Internet gambling," advised Jeffrey Sandman,
representative of the Safe and Secure Internet Gambling Initiative. "If the
U.S. continues to prohibit Internet gambling, our country could wind up
being forced to pay billions in trade compensation. However, if we move to
regulate Internet gambling, we can develop a responsible policy solution
that allows the U.S. to come into compliance with WTO requirements and give
every American the right to make up their own mind whether to gamble
online," Sandman said.

About Safe and Secure Internet Gambling Initiative

The Safe and Secure Internet Gambling Initiative promotes the freedom
of individuals to gamble online with the proper safeguards to protect
consumers and ensure the integrity of financial transactions. For more
information on the Initiative, please visit http://www.safeandsecureig.org.
The Web site provides a means by which individuals can register support for
regulated Internet gambling with their elected representatives.