"Separately, the panel inappropriately found that our regulations on gambling services were a prohibited quota based on a faulty new legal theory that places unwarranted restrictions on the ability of all WTO Members to regulate their services sector.

"In addition, contrary to what the panel asserted, there is no obligation for WTO members to conduct international consultations before taking action to protect public morals and public order and enforce criminal laws. WTO members were already restricting gambling and other activities affecting public morals and public order long before they created the WTO. The WTO agreements confirmed the rights of Members to protect public morals and public order. Nothing in any WTO agreement requires Members to seek approval from their trading partners before exercising those rights. Indeed, on these grounds alone, this panel report should be of great concern to every single WTO member.