Generating massive interest on both sides of the Atlantic, and giving
online gambling stocks a boost is the news in the Financial Times
today that US Congressman Barney Frank is about to launch an offensive
against the Unlawful Internet Gambling Enforcement Act, which has
been creating problems for US players and online gambling operators
alike since last October.
Spokesmen for Frank, who is chairman of the powerful House financial
services committee, confirmed to the newspaper that he is currently
working on legislation to repeal the controversial Act, which was
passed under questionable circumstances tacked on to an unrelated
piece of security legislation after some adroit political maneuvering
by now retired Senator Bill Frist.
Frank's staff could not give details of how any repeal would unfold
and apparently the strategy and tactics have yet to be worked out
and a timeframe planned.
Frank, who vigorously opposed the legislation during its passage is
quoted by his press office as describing the UIGEA as one of the “stupidest
laws ever passed" and adds: “I am working
on legislation to cut back on this internet gambling thing…
I think it’s preposterous”.
The Congressman's office had previously stonewalled enquiries that
Frank was about to attack the Act after rumors circulated in the industry
last month that he was about to move against it.
Shares in PartyGaming, 888 and Sportingbet were all up as the news
hit the London market.
The FT says the mid-term Democratic victory in the US Congress brought
some hope to the online gaming sector and John Conyers, chairman of
the House judiciary committee, is also considered sympathetic to the
industry. Conyers has for some time proposed that a bilateral congressional
investigating committee examine the implications of regulating online
gambling, a concept which has found favor with the American Gaming
Association.
But while Frank and Conyers are “powerful potential allies,
it is far from clear that the lawmakers would have enough support
to pass any meaningful legislation” because it is not
clear “whether the votes would be there for a regulatory
bill” the FT opines, adding that the US Treasury is currently
drafting the rules to implement the Act but that the deadline for
presenting them has been missed and is now expected in April or May.