[Kurn]

The US will dig its heels in. Its position will be that WTO regs can't force any member to adopt any policies that violate already existing laws. (I believe this to be true about WTO regs, but I'm not sure).

However, since the US has no federal gambling laws (other than the Wire Act, the relevance of which to internet gambling can be disputed), the WTO can reasonably argue that by allowing interstate betting on horse racing, the US is technically not being asked to agree to something already forbidden by its own laws.

As they have already started to do, the professional and collegiate sports leagues will side with the DOJ, so expect the court battle (albeit one based on dueling technicalities) to go on for a while.

Many people doubt the US will ever allow Antigua to get away with billions of dollars of IP piracy. Maybe we're talking a total trade embargo, maybe military action. Anyone who thinks even the least anti-gambling legislators will allow Antigua to blackmail us by threatening IP piracy is wearing very rose-colored glasses.

Of course, cooler heads may ultimately prevail and just convince the US to yield to the inevitable and also not turn its back on tax revenue, but I don't expect an easy compromise solution in an election year.