As Democratic lawmakers in Congress realize that they face tough elections in the fall, they are beginning a push for online gambling legalization legislation.  As you know, the Republicans pushed through anti-online gambling legislation in 2006.  The bill, known as the Unlawful Internet Gambling Enforcement Act, prohibited financial institutions from handling accounts associated with online gambling.  So, players were, in essence, unable to cash in on any online gambling winnings.

Since online gambling websites are not allowed in the United States, the proponents of the bill thought that they had effectively shut down online gambling in the United States.  The problem, as time went on, was that there were no provisions for enforcement of the law.  The UIGEA, as it now stands, is scheduled to go into effect on June 30^th.

Barney Frank (D-MA) is the lawmaker behind the legislative thrust to dismantle this bill and legalize online gambling in the U.S.  He has tremendous backing among legislators on Capital Hill.  They realize that online gambling in the U.S. can bring in tons of revenue which the country desperately needs at this time.  The Frank bill would permit online operators to receive licenses to operate in the U.S. under strict oversight.

The winds of change are blowing in Washington D.C. and the Democrats would like to push the new legislation through as soon as possible.  They have strong backing in this regard.  During the first three months of 2010, lobbyists in Washington spent over $5 million on behalf of online gambling support.  One of the biggest spenders was Harrah’s Entertainment Inc., one of several Las Vegas gambling companies that expect to be major players in online gambling in the U.S.   

This represents a change in philosophy in Las Vegas.  After fighting online gambling for years, the Las Vegas casino operators now realize that the way to expand their profits is by investing in online gambling.  Harrah’s has significant interests in the online gambling industry, but will only be able to realize these profits when online gambling is legalized in the U.S.  

Last week, Nevada U.S. Representative, Dina Titus, signed up as a sponsor of the Frank bill.  Now is the time for lawmakers to toss the ineffective UIGEA and enact new legislation that will benefit the citizens of the U.S. as well as the country as a whole