Battle lines drawn in proposal to overturn US online gaming ban
Posted by Gavin Smith on 08 May 2009 at 10:05
A democrat representative is pushing on with his plan to introduce a bill which would legalise internet gaming in America.
Barney Frank, who is chairman of the house financial services committee, has drawn up legislation which would overturn the current ban and possibly open up the route for foreign gaming firms to return to the US.
Quoted by the Financial Times, he called existing legislation "the single biggest example of an intrusion" into internet freedom and said he was expecting some cross party support for his bill.
Adding he wanted to move the bill before the break in August, he held a press conference and outlined the move, which would regulate and tax internet gambling in America.
Crucially, alongside him was Peter King, a republican representative, suggesting he may yet get some cross party recognition.
But opposition to the bill is already growing from anti-gambling groups and other republicans. According to the financial Times, even if it is passed, some states would be able to set their own rules and continue with their own ban.
New rules on the ban on internet gaming were announced in 2006, and the Department of Justice has been taking of stiff approach to enforcement.
Many overseas companies were driven from the American market, including the likes of 888 Holdings and PartyGaming.
Representatives of the internet gaming groups welcomed the bill but remained guarded on the chances of success.
Quoted by the Financial Times, Clive Hawkswood of the Remote Gambling Association, said: "Nothing is going to change overnight, but given how devastating 2006 was to some of our members, for people in less than three years to say there is a different way of dealing with this - there is reason to be pleased with that."
Opposition to the bill is not wholly predictable as some of America's biggest land based casinos who once saw online gaming as a big threat have since softened on the issue.
The paper also reported that the likes of pro-family groups and sports organisations worried about the effect on matches could launch a campaign against the changes.
