U.S. ban on Internet gambling...opposed by anti-gambling Republicans

Gambling is the wagering of money or something of...material value on an event with an uncertain outcome with the primary intent of winning additional money and/or material goods. Typically, the outcome of the wager is evident within a short period.


U.S. Rep. Barney Frank, chairman of the House of Representatives Financial Services Committee, said he would introduce a bill next week to overturn a three-year-old U.S. ban on Internet gambling.

The legislation, likely to be opposed by anti-gambling Republicans, would overturn a law imposed during the Bush administration that has hurt U.S. trade ties with the European Union. Frank said the bill was being drafted this week.

"We'll be introducing it next week and I plan to move on it," said Frank, a Democrat, speaking at the Reuters Global Financial Regulation Summit in Washington.

The European Commission, the EU's executive, said late last month in a draft report that a U.S. Justice Department crackdown on European online gambling companies violated U.S. commitments under the World Trade Organization.

But the commission, which oversees trade policy for the 27-nation EU bloc, said it would seek a negotiated solution with the United States rather than file a WTO complaint.

European online gambling firms lost billions of euros in market value after Congress in 2006 made it illegal for banks and credit card companies to make payments to online gambling sites.

Republicans still controlled the White House and Congress when the law was approved. Now, Democrats are in control in both branches of the government, but it's unclear how the Obama administration will handle the issue.

The term gaming in this context typically refers to instances in which the activity has been specifically permitted by law. The two words are not mutually exclusive; i.e., a “gaming” company offers (legal) “gambling” activities to the public.

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