Congressman proposes looser online gambling restrictions

Jake Widman
Wednesday, 06 May 2009 02:15

Business IT - Technology

U.S. Representative Barney Frank announced that he will introduce a bill to roll back online gambling rules enacted in 2006.

The Unlawful Internet Gambling Enforcement Act of 2006 was passed by the Republican-controlled congress and signed into law by President George Bush.

It prohibited the transfer of funds from a U.S. financial institution to an Internet gambling site, with some exceptions (e.g. for fantasy sports and horse racing sites).

That provision would prevent Americans from using their credit cards or bank accounts to gamble online.

Even though the regulations did not go into effect until January 2009, overseas gambling sites stopped accepting U.S. customers. They also drew international criticism, as the European Commission investigated whether the rules discriminated against EU firms, and Antigua challenge the rule as an unfair trade restriction before the World Trade Organization.

The bill introduced by Congressman Frank (D-Mass.) will exempt licensed, regulated operators. Frank said it "will enable Americans to bet online and put an end to an inappropriate interference with their personal freedom."