BARNEY TO THE RESCUE?

16 March 2007

Top US politician says he intends to attack "one of the stupidest laws ever passed"

Generating massive interest on both sides of the Atlantic, and giving online gambling stocks a boost is the news in the Financial Times this week 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 manouevring 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 rumours circulated in the industry last month that he was about to move against it (see previous InfoPowa report)

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 favour 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.

STOP PRESS: As we went to press this week Reuters was reporting on an interview with Rep. Barney Frank, who said he will give details in the coming weeks on the possible legislation to repeal the UIGEA.

In an interview, Frank said he is in no hurry and plans to consult with others on the matter. "I'm not ready to give you more details, but I will be by next week or so. We'll talk more about it later. There's no urgency on it," he said.

Online Casino News courtesy of InfoPowa

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