Hong Kong similarly allows only the Jockey Club to accept bets via the Internet on its races, but a government spokeswoman said, ``As far as we understand, the WTO ruling only applies to the US and Antigua,'' the Caribbean island nation that brought the case against the United States for damaging its Internet gambling industry.

Industry observers say that Hong Kong and the United States are among the most aggressive governments in restricting Internet gambling. The WTO's initial decision on Antigua's complaint last year found much wider fault with US legal barriers, but the trade body's appeals board narrowed the findings to focus on the Internet horse betting law.

Hong Kong's offensive started with amendments to the Gambling Ordinance in 2002 banning anyone in Hong Kong from placing bets with anyone other than the Jockey Club and banning anyone but the Club from taking bets. No one has been prosecuted for unauthorized Internet betting or bookmaking. The government spokeswoman said, ``We have no plan to amend the existing Gambling Ordinance.''

Joseph Kelly, a law professor who studies the gaming industry at the State University of New York College at Buffalo, said the WTO's appeal ruling may actually reinforce Hong Kong's legal position as the board upheld general US restrictions on Internet gambling in the name of defending morals and public order, only singling out horse racing since that is the one area where the United States has explicitly allowed online betting. ``It would seem Hong Kong could use the same reasoning, that the prohibition is necessary to prevent crime, money laundering, underage betting and fraud,'' he said.

However, shareholder rights activist David Webb said Hong Kong should follow the spirit of the appeals ruling and amend the law. ``It is unfair to allow consumers to bet online with the Hong Kong Jockey Club but prohibit them from betting online with any overseas bookmaker or race track,'' Webb said.

``It should then be a matter of choice as to whether a consumer wishes to deal with a licensed bookmaker in Hong Kong, or an unlicensed bookmaker from overseas, or one licensed by an overseas regulatory agency.''