The small island of Antigua left the sugar and banana industry for internet gambling. The states of Utah and Hawaii where gambling is illegal, strongly oppose this new development. Antigua claims that if the U.S. ties to block other countries from offering internet gambling it would be in violation of a 1993 international trade agreement. The World Trade Organization ruled in favor of Antigua. "In trade-speak, Utah's prohibition amounts to the use of a zero-quota on the supply of Internet gambling services, and that's a violation of market access," said Peter Riggs, director of the Forum on Democracy and Trade. This decision will also prohibit states from having exclusive agreements with Indian tribe casinos. Many of the monopolies states hold on state lotteries would be eliminated. Often proceeds from these lotteries are used to supplement state education.
Of course the U.S. cannot negate on a trade agreement, but what effect will this have on the U.S. gambling market.