Source: http://online.wsj.com/public/article/SB118783338870406171.html (subscribers only)
Gambling911 story: http://www.gambling911.com/EU-Service-Firms-US-Internet-Gambling-082407.html (copy of WSJ article)
2+2 thread: http://forumserver.twoplustwo.com/showflat.php?Cat=0&Number=11789891
The bad news: Allowing gambling back in appears to be off the table.
The good news: I think the U.S. will benefit by opening up some of these markets to foreign competition. Trade's not a zero-sum game.
The interesting bit: Many service sectors are regulated by the states (like the legal profession) and there could be a fair amount of wrangling. Incumbent players will lobby quite hard to keep their protected status. Congress might finally have to face reality when the WTO's bill comes home and decide that gambling really isn't all that important.
(Antigua's a whole different set of negotiations. International Herald Tribune article from yesterday: http://www.iht.com/articles/2007/08/22/business/gamble.php)