Once any state legalizes any form of gambling online, competition can come from anywhere, even overseas. (The image is from Goodsgallery, Bensalem, Pennsylvania.)

That's the gist of last week's WTO ruling which both the U.S. and Antigua are spinning as victories for their side.

My guess is this will stop in its tracks efforts in Illinois and Georgia toward allowing online sales of lottery tickets, since it would open all Americans up to competitors around the world.

Antigua brought the case, saying U.S. efforts to prohibit online gaming were violations of trade agreements. On straight casino games it lost. On horse racing it won.

Why the difference? It's because Americans are allowed to play the horses online through American sites. And if they can play the horses online, then restricting the action to American sites violates fair treatment.

The case is a major blow to America's efforts to regulate gambling on a state or local basis. But if the U.S. wants to impose hard-to-enforce laws on all its people, that's perfectly fine under international law.