If there is a silver lining to the WTO ruling, and Wallach says it is a fleeting one, it is that a clerical error by attorneys for Antigua failed to spell out Utah's law in the legal paperwork. So the WTO refused to rule directly on the Utah law, even though it left open the possibility that Utah's prohibition could be wrapped into the larger WTO ruling.

"This is the place where federalism and the WTO go head-on in a record collision," she said.

The bottom line of the ruling, Wallach said, is that the United States lost and must now change its law prohibiting Internet gambling or face trade sanctions.

That could have implications down the road should foreign casinos, racetracks or other gaming operations seek to set up shop in the United States, even in states where gaming is not currently allowed.

The WTO ruled that the United States is seen as having 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.

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E-mail: spang@desnews.com