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This Article examines GATS rules on domestic regulation as well as the WTO Appellate Body and Panel decisions in the ‘U.S-gambling’ case and asks if the WTO has improperly restricted members' ability to regulate domestic concerns. Highlighting the difficulties that members face in trying to resolve the conflict between liberalization and regulatory autonomy in the context of cross-border services, this Article argues that the scope of GATS rules on domestic regulation needs to be refined if GATS is to remain an instrumental force in liberalizing trade in services. The Article concludes with proposals to guide the negotiations on domestic regulation to ensure that such regulations are not unnecessarily burdensome to trade in services. Identifying certain unresolved issues of ‘U.S.-Gambling’ that characterize the tension between market access and domestic regulatory autonomy, it also argues that these issues must be addressed in the negotiations on domestic regulation if a desirable balance between regulatory autonomy and progressive liberalization of global services markets is to be achieved. This is crucial to achieving a desirable balance between members' regulatory autonomy and progressive liberalization of global e-services markets, and for GATS to remain an instrumental force in liberalizing cross-border trade in services.