New challenge to America's online gambling ban
Posted by Gavin Smith on 07 May 2009 at 08:05
America's controversial ban on online gambling could find its number is up after officials proposed a new bill which would overturn it.
The Daily Telegraph reports Barney Frank, chairman of the US House of Representatives Financial Services Committee, has said he will back a bill to scrap the ban, first introduced by George W Bush.
If approved, the bill would be a big boost for British internet gaming companies which saw their values fall after America made it illegal for banks and credit firms to make payments to internet gaming sites.
It can also see British companies returning to America and may also see further consolidation of the online industry, according to the Telegraph.
Among companies with a close eye on the bill are the likes of 888 and PartyGaming.
Last month the European Commission said a crackdown on Europe's internet gambling companies went against World Trade Organisation rules.
The Telegraph adds that PartyGaming has signed a long awaited $105m (£70.5m) agreement with US officials to free up the company from the chances of prosecution. Other companies are expected to do the same.
However, the paper also says some commentators claimed the chances of congressman Frank overturning the national ban were limited, and said attempts at state level to ease regulations could prove more successful.
