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But a company operating an online gambling website in a foreign company is not doing business in the United States. When you gamble at their website, you are doing so under the jurisdiction of the country in which the site is located. You agree to this condition. All sites terms and conditions state this condition. So the foreign website is not making any income in the United States.
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That's true for any jurisdictional issues if you (a customer) wish to sue the Internet gambling site. However, a case can be made that these sites are doing business in the US.
Chuck Humphrey wrote an article dealing with this issue. A reasonable conclusion based on that article is that the US could consider that the sites are operating in the US.
Obviously, the sites would vigorously argue that they don't operate in the US. However, this is definitely not settled law.
If the US were to successfully get a court to rule that the sites owe US income tax, your conclusion that this would be a further violation of the WTO might be moot. I suspect that many countries would have their tax agencies follow the US' lead in going after the sites (perhaps it's just the cynic in me having dealt with various state tax agencies).
-- Russ Fox