The U.S. merely banned foreign corporations from offering gambling to U.S. citizens. This is perfectly legal under WTO rules and treaties. The problem was tha

The U.S. merely banned foreign corporations from offering gambling to U.S. citizens. This is perfectly legal under WTO rules and treaties. The problem was that the U.S. exempteddomestic companies from the same restriction (basically, the law exempted horse racing from remote gambling restrictions). Consequently, the entire foreign prohibition was ruled discriminatory by the WTO (and not just the portion applying to horse racing). The gist of the WTO ruling was that it is perfectly acceptable for a country to impose restrictions on foreign corporations as long as those same restrictions apply to domestic corporations.