As far as US citizens are concerned, the United States Congress now has the fate of Internet gambling in its hands.  Congressman Barney Frank from the great Commonwealth of Massachusetts has proposed legislation in Congress that would enable some types of online gambling such as Internet poker and horse racing.  This piece of legislation, called the Payments System Protection Act (H.R. 6870) would relieve the U.S. Financial Services from implementing bans on Internet gambling.  This bill was approved earlier this week by the House Committee on Financial Services and it is now in the House of Representatives awaiting a vote.  It is presumed that the bill will be voted on sometime around the third or fourth week in June.    

The Payments System Protection Act would overturn the present legislation governing Internet gambling in the United States.  The Unlawful Internet Gambling Enforcement Act (UIGEA) of 2006 outlawed gambling on the part of Americans on offshore gambling sites.  Over the past three years, the U.S. government has been unable to enforce this law to any degree, and many Americans continue to use the offshore sites without any repercussions.

The new law, while permitting Internet gambling on a modified scale, would prohibit betting on sports, except jai alai, dog racing and horse racing.  Even in a limited state, the new legislation would rekindle Internet gambling in the United States.  It is estimated that 23 million Americans participate in poker over the Internet. 

The proposal would include the appointment of a special administrative law judge who would be anointed with the power to define unlawful Internet gambling, and carry out an impact study on compliance costs.  The legislation, known as the Frank Bill, has the unilateral support of the Commerce, the Financial Services Roundtable, and the Credit Union National Association.  These institutions have been critical of the UIGEA, proclaiming the 2006 law unworkable and burdensome.

The lobbying group, the Safe and Secure Internet Gambling Initiative, supports the Frank Bill, and takes its support a step farther.  It discredits the UIGEA for an invasion of the privacy of the American people, and it lauds the Frank Bill as a means of protecting American consumers while collecting billions of dollars in needed Federal revenues.

We’ll be keeping a close eye on Washington, DC, over the next few weeks, as the results of the vote on this legislation will affect an international ripple in the currents of online gambling.