Democrats in the US Congress have launched a campaign to revoke America’s controversial ban on internet gambling which thrust the gaming industry into disaster last year and prompted the arrest of several British executives. Barney Frank, the chairman of the House financial services committee, introduced the Internet Gambling Regulation and Enforcement Act 2007 to establish a regulatory framework for the licensing of operators to accept bets and wagers. This bill was launched with a view to legalize online betting, citing its economic benefits and personal freedom.
The proposal would allow gambling firms to take bets from US citizens online as long as they implemented safeguards against compulsive gamblers or children. It envisions a licensing regime enabling the US government to collect tax on bets. Investment firm Friedman Billings Ramsay has estimated that taxing online betting could raise $20 billion over five years for the US treasury.
According to the proposal, licenses would be approved only to operators with the capability to prohibit underage and compulsive gambling as well as money-laundering and fraud. There would be an opt-out section for individual states and Indian tribes as well as for professional sports leagues and college associations. However, some Republicans have said that they would strongly oppose Frank’s legislation, and lawmakers have already predicted a political turbulence over it.
On the other hand, Frank had said that his proposal could face opposition from religious conservatives, and from some liberals who find gambling ‘tacky.’ However, he also argued that the ban imposed by Congress had awakened many voters to the issue and anticipated support for the bill could enlarge. However, followers of the bill indicated to the fact that it was co-sponsored by Peter King, a Republican from New York, who voted in favor of the original ban.
Earlier, the Republican-controlled Congress passed legislation on September 30 that curtails financial payments from banks to offshore Internet casinos that are illegal under US law. Introduced by Representative Jim Leach, an Iowa Republican who lost a re- election bid in November, the law envisaged at closing down the payment system for Internet gambling.
As a matter of fact, intense pressure mounted recently on the US government over the issue following several disputes in the sector. The World Trade Organisation has ruled last month that the ban was illegal since some domestic activities, including horseracing, were exempt, making it discriminatory against foreign companies. Supporters of the US ban argued that the Internet betting can be addictive and potentially drain people’s savings, a risk they say is especially acute for young people who are frequently online.
