House Financial Services Committee Chairman Rep. Barney Frank (D-Mass) has introduced the Internet Gambling Regulation and Enforcement Act of 2007 to repeal the Unlawful Internet Gambling Enforcement Act, which previously outlawed most forms of Internet gambling in the U.S.
While repealing the previous prohibition, the new bill prevents an Internet gambling free-for-all. Frank's act establishes a federal regulatory and enforcement framework in which companies will be licensed to accept online bets and wagers from U.S. citizens to the extent permitted by individual states, Indian tribes, and sports leagues.
The rationale for the repeal is outlined specifically within the act under §5381—"Congressional findings and purpose"—a licensing scheme is established to prohibit underage gambling, compulsive gambling, money laundering, and fraud.
In a press release announcing the bill, Frank tacitly acknowledges that Americans still gamble on the Internet even though President George W. Bush in 2006 signed the Unlawful Internet Gambling Enforcement Act. Rather than having the industry completely unregulated, the act is the means to provide consumer protections for online gambling.
Sounding more Republican than Democratic, Frank said, "The existing legislation is an inappropriate interference on the personal freedom of Americans, and this interference should be undone."
The proposed bill currently indicates that worldwide online gambling is a $13 billion industry.
