US Congressman Unveils Online Gambling Legislation

Yesterday (Wednesday, May 6) Congressman Barney Frank unveiled new legislation to Congress that is designed to legalize and regulate online gambling in the United States, a country whose government has up until now stubbornly refused to recognize the benefits of legalizing the internet pastime.

Said Frank, a Democrat from Massachusetts, 'This bill will enable Americans to bet online and put an end to an inappropriate interference with their personal freedom.' If passed, Frank's bill will allow the U.S. Treasury Department to establish an online gambling regulatory and licensing system.

This would allow online gambling companies to accept bets from American citizens. Currently online gambling is banned in the country as a result of the Unlawful Internet Gambling Enforcement Act (UIGEA) which was passed at the end of 2006. The Act has effectively 'outlawed' the internet activity in the U.S.

UIGEA was designed to make it illegal for U.S. banks, financial institutions and credit card companies to process online gambling-related payments by American citizens. After the passing of UIGEA, online gambling firms were forced to stop accepting U.S. players, resulting in a substantial drop in their revenues.

Frank, who is also the chairman of the House Financial Services Committee, made it clear that should online gambling be legalized in the United States, online casino owners and operators would have to take on a high level of responsibility once they had applied for and been granted online gambling licenses.

He explained how the onus would be on them to put systems in place to address problem and underage gambling, as well as prevent fraud and money laundering, or face having their gambling licenses revoked. Frank is also planning to introduce legislation to delay the implementation of UIGEA on December 1.

He said, 'The legislation will stop federal regulators from enforcing the UIGEA until Congress has had a chance to decide national policy.' Frank's announcement has been widely welcomed by the global online gambling fraternity, as the United States is by far the most lucrative online gambling market in the world.