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from The Wall Street Journal:

In the United Kingdom, online gambling will be regulated and -- more importantly -- taxed, beginning in 2007. It is as easy for a would-be bettor to reach a gambling Web site in Athens, Greece, as one in Athens, Ga.

Indeed, the U.S. government's assertion that interstate Internet gambling is illegal has provoked an international trade fight. In March 2004, the World Trade Organization ruled the U.S. had violated global trade pacts by banning offshore firms from offering U.S. citizens some forms of Internet gambling -- notably sports betting -- while providing exceptions for U.S. companies that offer horse betting and state-run Internet lotteries. The U.S. says it has the right to ban imports that may be found morally objectionable.
(emphasis added)

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