Rep. Frank eyes Web gambling ban repeal

Rep. Frank eyes Web gambling ban repeal

	Published : Wed, 14 Mar 2007 23:56 By : Agencies Print this Story

WASHINGTON (AP) - The chair of the House Financial Services Committee is considering legislation that would overturn the ban on online gambling passed last fall.

A spokesman for Rep. Barney Frank, D-Mass. said Wednesday the congressman may introduce a bill to reverse the Internet gambling law, but he stressed there is nothing concrete yet.

'There's no draft, no text -- this is very much still in the thinking stage,' said spokesman Steve Adamske.

The Financial Times quoted Frank Wednesday saying that the law, formally known as the Unlawful Internet Gambling Enforcement Act, is 'preposterous' and one of the 'stupidest' ever passed.

Attached to a larger security bill last October, the act makes it illegal for U.S. banks and credit-card companies to process payments to online gambling businesses outside the United States. The legislation caught many British-based companies off guard, causing companies like Sportingbet PLC and Leisure & Gaming PLC to sell their U.S. operations.

Poker Players Alliance, a lobbying group pushing for a repeal of the ban, earlier this month hired former Republican Senator Alfonso D'Amato to chair its board. The group, primarily funded by online gaming businesses, was formed in 2005 to oppose regulation of Internet gambling in the U.S.

However, Frank likely would need more than a strong push from industry to overturn current law, says Anthony Cabot, a lawyer who specializes in gaming issues.

'It's very difficult to get legislators to support something that could be perceived as pro-gambling, particularly at the federal level,' Cabot said. 'I think the congressman has a difficult battle ahead of him.'

A spokesman for Partygaming PLC, the largest online poker business in the world, declined comment on Frank's remarks.

The Gibraltar-based company released 2006 earnings earlier this month of $128.4 million, down $293.2 million from the prior year.

Shares of British gambling firms jumped Wednesday on speculation that they could eventually re-enter the U.S. online gambling market, which had revenues of $5.8 billion in 2005.

Shares of Sportingbet rose 3 pounds, or 5.4 percent, to 58.75 pounds ($113.70) on the London Stock Exchange while Partygaming rose 4.75 pounds, 12.5 percent, to 42.75 pounds ($82.76). Leisure & Gaming shares fell 25 pence, or 2.5 percent, to 10.25 pounds ($19.83).