New Legislation for Online Gambling and a settlement for Party Gaming

A new bill will be introduced by Rep Barney Franks mid April which will remove the ban for online gambling. The bill would also regulate and tax it so the US will finally get all the benefits of online gambling. Rep. Franks said he will introduce the legislation on its own merits and not attach it as a rider to any must pass bill. He wants this to be done properly unlike what the Republicans pulled in 2006 when passing the UIEGA. Hopefully it will gain support of lawmakers once they look at recent studies concluding the US could rake in taxes of up to $52 billion over the next 10 years.

On another gambling forefront Party Gaming has settled with the US Justice Department, which sent gambling stocks soaring. The settlement includes a payment to the US of $105 million over the next 3 years in trade the US will not prosecute. Seems like a steep price for doing nothing wrong but at least it will put their foot back in the door on the US market. Other companies such as 888.com will probably soon follow the settlement path. Everyone wants to be in good standing with the US when the door does open again.

So here are my two cents on both topics mentioned. Barney Franks may still have an uphill battle with overturning the UIEGA especially since the country is in such bad shape. Congress has its hands full with bailouts, job loss, and healthcare, not to mention the never ending war, so we will really have to see how this fits into the schedule. I believe the one good thing about the bill right now is the tax revenue it would bring the US. I mean this country is in shambles right now and really could use the extra money so let’s see.

As far as Party Gaming, I see why they did the settlement. I mean they are now in good standing with the US. But I don’t like that they backed down to the US because they were doing nothing wrong. There was no law before 2006 so they shouldn’t be punished for allowing US players to gamble before 2006. But who am I in this big world of online gambling….until next time….happy gambling!!

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