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I would argue that it does take the US further out of compliance, if there is such a thing. The truth is you are in compliance or you are not. It's like being a little bit pregnant.

However, if the US's two options to be in compliance is eliminate all remote gambling, or open the US market to all remote gambling from Antigua, adding one more form of state sanctioned remote gambling to the US market does in a way take them further out of compliance.


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You have this exactly backwards. The WTO is going to need to settle for some opening up of the Internet gambling market. A trade war won't be avoided by moving in the direction of more restrictions.

The USA will take the trade war before they eliminate the lotteries. The USA will also take the trade war before they open up the gambling market so much that foreign entities are allowed to compete directly with the lotteries.

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There will be no "trade war" unless the US congress both refuses to pass a compliant bill enabling foreign access to the domestic gambling market, and also responds in kind to the WTO approved trade sanctions that will result from such non-compliance. So there are actually 3 choices here for the US:

1) comply
2) don't comply but accept sanctions without reprisal (but the bill for which will be footed by various US industries)
3) neither comply nor accept sactions (retaliation that is equivalent to a trade war)