Yesterday, Congressman Barney Frank, introduced a bill that, if passed, will reverse the ban of online gambling in the United States.  The Act, also known as the Internet Gambling Regulation and Enforcement Act of 2007, has been introduced in response to the Unlawful Internet Gambling Enforcement Act (UIGEA) that was passed in 2006.  

The UIGEA, restricts any US financial institution to facilitate and handle any type of transaction related to Internet Gambling.  The legislation, which has plenty of critics, made its way through the House by being attached to a completely unrelated bill that held prevalent support from the Representatives.

Frank, who is clearly among UIGEA’s critics, exclaimed in a prepared statement: “The existing legislation is an inappropriate interference on the personal freedom of Americans and this interference should be undone,”

The Bill proposed by Frank outlines a framework to give companies in the United States regulated licenses to accept bets and wagers from US citizens.  By doing so, those who choose to participate in online gambling activities will be protected against underage and compulsive gambling, fraud and money laundering.  

The Bill also discusses that by regulating and licensing online gambling, the country would receive additional tax revenues as well as reducing tax avoidance.  

In 2005, the Global Gaming Market grossed around $258 billion in revenues with North American residents accounting for about 47%.   It is also estimated that Internet gambling accounts for 5% of the total global gaming market making it a $13 billion industry and growing.  

Internet gambling is an activity that is currently regulated and licensed in over 50 countries through out the world, subsequently providing them with billions of dollars in tax revenues.