Online Gambling in US could soon become Legal
29th April, 2009
According Barney Frank, who chairs the US House of Representatives Financial Services Committee, new legislation to overturn Americas ban on online gambling will be put before congress next week.
The Unlawful Internet Gambling Enforcement Act (UIGEA) introduced during President Bush’s administration would be overturned, should the legislation pass congress. However the legislation is already behind schedule as it was originally due to be presented at the end of March and is still being drafted.
The UIGEA prohibited US financial institutions from processing transactions between US citizens and online gambling companies, effectively banning players from using online gambling operators.
European online gambling firms were hit hard when the UIGEA was passed in 2006, with some facing criminal prosecution for operations in the US before the bill was passed. PartyGaming was one such company who faced prosecution, although they have recently settled with US authorities for $105million.
The new legislation has lead to hopes among both players and operators that the US will once again be open to online gambling.
According to Egaming Review, Price Waterhouse Coopers, the world leading professional services firm suggests that taxing and regulating to the online gambling industry could lead to around $52billion in tax revenue for the US government.
However, the research also shows that this will largely depend on professional sports leagues allowing their games to be bet on, and as many congress members know professional sports leagues, including the National Football League, are very much opposed to this.
