UIGEA news and analysis

The author of a the HR2267 legislative proposal to legalise online gambling in the United States, Congressman Barney Frank, appeared as a guest on the widely distributed Jay Leno Show in the United States this week, putting out the word for a regulated online gaming industry instead of bans.

A Congressional bill that could raise billions of dollars in state and federal revenues through the taxation of a legalised online gambling environment in the United States remains stuck in committee, but author Representative Jim McDermott is pushing hard to get it marked up in time to get it to the House floor in this Congressional session.

The Reno Gazette Journal created a ripple of headlines across the media this week with an article on the internet gambling position of influential Nevada politician and US Senate Majority Leader Harry Reid.

Federal prosecutors continue to go after financial processors in their attempts to stifle online poker, reports Forbes Business, revealing that the authorities reached a settlement worth $13.3 million Tuesday with Ahmad Khawaja, together with his firms, Allied Wallet and Allied Systems.

This week respected publications Forbes and the LA Times commented on Congressman Barney Frank's bill HR 2267, which seeks to licence and regulate online gambling in the United States. Forbes suggested that the recent House Financial Services Committee vote approving the forward passage of HR2267, although bi-partisan, should have enjoyed more Republican support, given that political party's general mantra of lower taxes, smaller government and free markets.

Jim Wilkinson, the financial director for British online gambling group Sportingbet plc, has opined that his company is unlikely to be a player in industry consolidation until it has agreed a settlement with United States authorities to protect it from the threat of prosecution for activities pre-UIGEA.

Several US media reports indicate that an amendment to Congressman Barney Frank's proposal to legalise and regulate internet gambling in the US may have the effect of softening opposition from the traditionally opposed National Football League.

The Reno Gazette-Journal commented over the weekend on federal attempts to legalise online gambling in the United States, noting that three Nevada representatives in the House of Assembly support Congressman Barney Frank's HR2267, but that the support of Senate Majority Leader Harry Reid will be critical.

The Atlantic City Weekly carried the interesting news this week that land gambling operators in the state of New Jersey are interacting with as yet unidentified online gambling software providers in anticipation of a legalised online gambling market.

Speaking to journalists in a post-financial results conference Friday, Party Gaming CEO Jim Ryan addressed the question of obstacles to his company's re-entry to the US market, assuming that market is legalised.