Yes, the races are gender-locked. They also can only be two classes:
Human: Warrior and Paladin
Elf: Sorceress and Warrior
Felynx: Warlock and Warrior
Lycan: Paladin and Warrior
And the new race, Diel: Archer and Warrior
I personally don't see it as a bad thing, especially since this is a PvP heavy game, and less different types of models there are, the smoother everything is.