Barney Frank Gives A New Chance For Online Gambling In The USA

May 4, 2009 - Wrote By Haley

When The Unlawful Internet Gambling Act went into effect in 2006, lots of overseas companies pulled out of the United States and took their business to other private operators in offshore locations. But now that there is talk about the law being lifted, other countries and companies want to join the US again. The government realized that there is still lots of online gambling going on, and there isn't any gambling revenue coming into the government.

Representative Barney Frank is scheduled to introduce legislation aimed at lifting the Unlawful Internet Gambling Act. Mr. Frank is the Chairman for the House Financial Services Committee and in 2007 he attempted to have the law overturned, and failed. He is confident that this time he will have a better outcome, due to the fact that President Obama boasted of his poker prowess during the election campaign, and the Democrats are less hostile towards Internet Gambling than the Republicans.

Clive Hawkswood, Chief Executive of the Remote Gambling Association, gives the US two or three years to raise more than $50 billion dollars from taxes on legalized gambling, although a study by Price/Waterhouse/Cooper says the US would probably raise that much within a 10 year time span. North America was once the biggest market for gambling, but since the act made in 2006, it has been passed by Europe and Asia. The law makes it illegal for financial institutions to supply funds for gambling, although enough people have made their way around the laws to ensure that online gambling stays in business.

The H2 Gambling Capital figured the revenue from North America for online gambling was $6 billion last year, which is more than a quarter of the global total of $22.6 billion. There is speculation that lots of overseas companies will form partnerships, some for the second time, with the US if gambling were legalized, because pulling out of the US cost some executives more than half of their companies.