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As Washington, D.C. prepares to implement the first online gambling regulations in the United States, there has been a lot of backlash. That could have easily been predicted, since gambling has always been a controversial issue. Some of the criticism has been valid while some has not.

A recent editorial by the Washington Post said that the District of Columbia should take the opportunity given by the current delay to repeal the legislation creating the online ambling regulation. The staff editorial board argues that because the process that led to the passage of the law was “tainted,” the entire plan should be scrapped so the council can start over with a more transparent process.

Though we support the regulation, the WaPo editors have some good points. The controversy surrounding how the law was passed is legitimate. The district council never debated the online gambling bill. They did not hold a public hearing on it, either, so they could get the public’s opinion. Instead, it was slipped into a supplemental budget bill without debate. Some in the council didn’t even know it was there. Once councilman, Tommy Wells, now says it should be repealed (maybe he should have read the bill).

Another problem is the sponsor of the bill, Michael Brown. Councilman Brown slipped the online gambling regulation into the bill somewhat secretively. Was that because he didn’t think it would pass otherwise? Or was it because he didn’t want his connection to the industry to derail his plans? It has since come out that Brown used to be employed by a firm that would profit from the regulation. According to WaPo, this is reason enough to repeal the law and start over. What are your thoughts?

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For the last 10 years or so there have been many Internet gaming news websites that have been reporting on the Internet gambling laws in the United States. With the debate on the legality of online gambling going on in congress, these websites have showed the people in America the pros and cons of the regulation of the online gambling industry.

In the last couple of years the online gambling issues has been a hot one and it has caused the more mainstream media to give the issue more coverage. Recently a New York Times article detailed how big land-based casino companies are changing their views on whether only gambling should be legal or not.

Gaming Analyst Steve Schwartz recently stated, “For years, the online gambling issue has been championed only by those within the industry. But now what we are seeing is a shift. The mainstream media has determined that Internet gambling has become a major issue in the US, and the coverage of the issue has broadened to almost all media outlets.”

The articles in the New York Times showed how companies like Wynn Resorts, Harrah’s Entertainment, and MGM Resorts, to name just a few, are beginning to soften their views on online gambling. Harrah’s Entertainment even launched an Internet casino that can be played on by American citizens when the Internet gambling industry is legal and regulated.

US Rep. Barney Frank has been on the forefront of the issues since the Unlawful Internet Gambling Enforcement Act (UIGEA) was created back in 2006. This law puts the burden on US financial institutions to halt any transactions that are processed that deal with gambling over the Internet. Rep. Frank saw a flaw in this law from the get go, however, be decided to take a different direction to fight it.

The banks state that they are not a policing agency and there is no way for them to determine if an online transaction deals with gambling, as the websites change the codes for transactions. However, Rep. Frank decided to turn his attention on the prohibition of Internet gambling in the US, as he claimed that American citizens should have the right to chose if they want to gamble online or not and that the UIGEA should be overturned.

For several years land-based casinos have been against any law that would regulate the Internet gambling industry. They were under the belief that if gambling were legal online it would take away customers. However, the recent economic slump has made many of these companies change their views. With attendance dropping at land-based casinos the companies now see their potential to branch out on the Net to expand their brand.

There has been work going on to change the laws in Congress and now the mainstream media in the US is now on the side of those who want the UIGEA overturned. Lawmakers will have to be wary because of this, as voting on gambling laws these days comes with various repercussions. The issue will be one of the main ones, as the November elections are soon upon us.

Many Americans want online gambling legal not because their stance on the issue has softened, but because they want that form of entertainment. Now with more of the mainstream media taking that stance the legalization and regulation of the Internet gambling industry may not be far off.

Congress is entering their final weeks before they adjourn early for the elections this year and that gives Internet poker a small chance for Internet poker to get pushed through in a bill before the Congressional session comes to an end.

This year has already been one that has seem some advancements in American’s citizens right to play poker with Representative Barney Frank’s bill to both regulate and license online gambling through the House Financial Services this July. However, the progress will not carry over in Congress from year to year and if there are changes from the election this November it may halt the momentum Internet poker has gained on Capital Hill.

The next thing that needs to happen is for Representative Jim McDermott’s Internet Gambling Regulation and Tax Enforcement Act to get to the Ways and Means Committee. A representative for McDermott recently stated that the Congressman wants a bill markup that will take place in late September or early October.

However, McDermott is not in Frank’s position, as he has the power to make the decision if a bill will be marked up since he is the Financial Services Committee chairman. McDermott has to convince the Ways and Means Committee chairman Sander Levin to get a bill markup.

Congress is back in session on October 8th, but John Pappas, who is the Poker Players Alliance (PPA) director, expects the representatives to come back after the 2nd of November for an extended session.

Pappas recently stated, “In past experience, they’ve worked all the way through Thanksgiving and through Christmas eve when I worked on the Hill. I wouldn’t expect anything different this time around. They have a lot of bills that need to be taken up. They don’t have the appropriation bills done. The lame-duck session is going to happen. It’s a necessity, no question about it.”

Members of the PPA that live in the districts of representatives of the Ways and Means Committee are being asked to write them letters to try to get members of Congress to push for a bill makeup.

Papas does not think that the Ways and Means Committee markup has to held in this session in order for the momentum for the legalization of online poker to continue. He said, “If it doesn’t happen before the elections, we feel very good we can get a markup and vote during the lame-duck session.”

There will have to be some serious political wrangling in this extended session from Frank, as well as Senate Majority Leader Harry Reid, for legislation for online poker to go through in 2010.

Frank has been at the forefront of trying to get Internet poker legalized and regulated for several years and he may do everything in his power to pass his bill if there is a legitimate chance it will be passed. Reid comes from Nevada and he is one of the most powerful people in the Senate. Land-based casinos, such as Harrah’s, that want online poker to be legalized, have influenced him. Even though Reid may have warmed idea of legislation dealing only with poker, he has yet to show public support for the issue. It would be a major event if he were to come out and champion the idea of legalized online poker and make it happen this year.

Basically poker players should not get their hopes up. There is more of a chance. However, there is still a better chance at the current time then there has ever been to legalize online poker in the United States.

Leaders in the Democratic Party have been trying to overturn the unpopular the Unlawful Internet Gambling Enforcement Act (UIGEA) for 4 years. Even though leaders like Rep Barney Frank have looked to be on the side of the online gambling industries they really have not done anything yet to change the laws.

With the new election cycle come up Frank and others on the Democratic Party have the cards tacked against them in overturning the UIGEA. Legislation has been proposed by Frank that did get to the House Financial Services Committee, but the bill has not got to the floor of the House and he has said that it may not take place before the mid-term elections.

As the new election cycle comes into full swing, Rep. Frank and other Democrats are up against the wall on overturning the UIGEA. Frank has proposed legislation that has made it through the House financial services Committee, but he has yet to advance the bill to the House floor, and he acknowledges that may not happen before the mid-term election.

Frank stated in a recent interview about the issue, “I’m not optimistic.” If the bill is not passed in the current session on the Hill it would be yet another delay and it is possible that it could cost the Democrats votes come this November.

For a few years Democrats have had the votes of millions of Internet poker players in America that wanted to be supported by the party so the laws about online poker would be changed. However, with not much being done some supporters of the party and Frank may instead turn their main focus to the slumping economy.

Maury Bell stated, “If the economy is taking center stage and the Democrats do not have time to fit in our agenda of changing the online poker laws, then I am going to have to reassess who I vote for in the upcoming election. It has been a frustrating four years, and I’m not going to allow them (Democrats) to hold my vote hostage any more on the hope that they might make my issue a priority.”

In November the Democrats may lose the majority in the Senate and the House. The majority in the Senate looks to be more stable for the Democrats since the Tea Party candidates may cost the Republican party the chamber majority.

However, in the House there is a legitimate chance that the Democrats will not be in control any longer. If that happens the likelihood of the UIGEA overturned do not look good. Even if there is bi-partisan support it is probable that Republican Spencer Bacchus and other lawmakers that are against pro-gambling legislation will keep the bill penned by Frank from being passed.

There is a still a possibility that in the lame duck session that the bill by Frank will gain momentum. Also, there is a chance that the Democrats will attach Frank’s bill to a bill that will create jobs and this will take place before the elections this November. If this does not take place the balance of power in the House will shift since many people in the United States will vote the other way in the election with how poor the economy is doing and their thoughts that the Democrats have not done anything to improve it.

The more the United States government looks into Internet gambling the sooner it may be before the laws are changed. Recently Goldwater Bank agreed to forfeit over $730,000 in order to settle a claim by the US Justice Department in money that was brought in as a result of illegal Internet gambling.

It has been a busy year for the Justice Department since they have been sending a serious message to the Internet gambling industry. This June the Unlawful Internet Gambling Enforcement Act (UIGEA) went into effect and, already, the government has had a few cases that have dealt with funds dealing with online gambling.

Goldwater Bank has made the claim that the money that is question came from transactions that was not legal. THEUIGEA put a lot of burden on financial institutions in the US to thwart Internet gambling transactions and the recent Goldwater Bank settlement indicates that the government will prosecute banks that do not follow the laws of the UIGEA.

In the past few months the government has shut down a few payment processors that have taken money in by residents in the US that are gambling online. The major money amounts may lead to the legalization and regulation of the Internet gambling industry.

Gaming Analyst Steve Schwartz recently states, “The government has been told how much money is being spent on online gambling, but the numbers have been projections.  Now, as they bust these processors, they are seeing first hand just how many millions of dollars are heading to offshore online gambling sites. With that much money involved, it may not be long before the laws change.”

Rep. Barney Frank already has begun the process to change the laws in the US. One of Frank’s bills was passed in the House Financial Services Committee, which the overturn the UIGEA as well as come up with a blueprint for regulating the online gambling industry in America.

Goldwater Bank was accused by federal officials of accepting financial transactions that were traced back to the gambling website of PokerStars. That will not be good for the PokerStars site, as they were in hopes to get a license to operate their website in the United States when and if the laws are changed.

An amendment to Frank’s legislation states that if any company is seen to be in violation of laws currently on the books in the US would then not be eligible to get a gaming license. Both Full Tilt Poker and PokerStars websites that were seen to be a main reason for the amendment, therefore the PokerStars and Goldwater Bank connection will not help the gambling site in the time to come.

The issue dealing with the Goldwater Bank came about after Ahmad Khawaja and his processing companies, Allied Wallets Inc., and Allied Systems Inc. had agreed to forfeit the amount of $13,3 million in funds that dealt with money laundering. The US government is under the belief that the money was used in transactions that came in from Internet gambling sites and gamblers residing in the US.

Recently, Playtech has begun preparations to enter the United States gambling market if the laws to overturn to UIGEA go through. The Chief Executive Officer for Playtech Mor Weizer thinks that the online gambling industry will be totally dominated by gaming companies within the U.S.

The main U.S. based companies that Weizer may have been talking about are MGM Mirage, Las Vegas Sands, Harrah’s Entertainment, and Wynn Resorts. Steve Wynn, who is the owner of Wynn Resorts, has been against online gambling being legal in the U.S. for a long time.

Playtech is a company that gives online gaming software to companies that run Internet gaming sites the world over. Playtech has taken recent steps to make sure that when online gambling is legal in America, the operators will be able to get licenses to use the software that Playtech offers.

Weizer recently stated to Dow Jones Newswires, “The timing is not clear but we see a genuine and positive momentum (towards online gaming regulations). We see a lot of interest from operators in the US, and we are in discussions with various local groups.”

One of the American groups is Harrah’s Entertainment, which has already moved into the Internet gaming industries in countries around the world. Harrah’s launched Internet casinos, with the Caesars brand, even though they do not take player from within the United States. Many gambling experts are under the belief that Harrah’s was getting ready for the online gambling market to be legal and open in the U.S.

U.S. Representative Barney Frank has already passed an Internet gambling bill through the House Financial Committee, which Frank chairs. The bill will move to the House, but it is not likely that the gambling legislation will get to the floor before the November mid-term elections. If the legislation id delayed past January 1, 2011 Frank will have to begin the process to make online gambling legal and regulated all over again.

There has been a lot of support within the legislature, which has been steadily growing for the last few years, to overturn the controversial Unlawful Internet Gambling Enforcement Act of 2006. The UIGEA has crated a ton of controversy, as since the law was implemented this June it has not done much at all to thwart the online gambling that is rampant in the United States even though it is technically illegal. Many think it is only a matter of time before online gambling is legal in the U.S. since the country has the biggest Internet gambling market in the world.

At the end of last month a big date for the battle to legalize online poker happened, as the House Financial Services Committee passed Barney Frank’s Internet Gambling Regulation, Consumer Protection and Enforcement Act vote of 41-22-1. This is the first time that they bill that regulates and licenses the Internet gambling industry in the United States received a positive vote on the federal level.

Just because the bill passed it does not mean Internet poker will be legalized. However, it does show that the views towards online poker are changing. Only 4 years ago Congress voted 6-1 against online gambling, as there was a lot of support for the Unlawful Internet Gambling Enforcement Act. In last month’s vote online poker received a positive vote by almost 2-1.

Former Senator Alfonse DíAmato, chairman of the Poker Players Alliance recently stated, “The fact is, online poker is not going away. Congress has a choice — it can license and regulate it to provide government oversight and consumer protections, or our lawmakers can stick their heads in the sand, ignore it, and leave consumers to play on non-U.S. regulated websites in all 50 states.  I’m glad the Financial Services Committee today overwhelmingly chose to act and protect Americans as well as preserve the fundamental freedoms of adults and the Internet.”

Frank’s bill got major support from the Democrats, who voted 34-4 in support, and they also received some bi-partisan support from the Republican Party as well. The Republicans had 18 votes against the bill 7 for it.

There were 14 amendments made to Frank’s legislation, most of which were supported by the Poker Players Alliance.

The controversial additions to the bill for poker players were a couple or amendments that would keep websites that have been seen to be in violation of international gaming laws from getting licensed in the U.S. This deals with such websites like PokerStars and Full Tilt Poker, which are a couple of the bigger poker websites the world over. The federal law is in a gray area in terms of online gambling.

Pappas stated the PPA would support the legislation as long as these current website operators are given the chance to apply for a license. Pappas believes the websites would have the chance to make their case before regulators under the current laws that may soon take effect in regulating online poker in the U.S. He also believes the poker sites of PokerStars and Full Tilt will continue to support the legislation as well as the effort of the PPA’s efforts. Pappas stated, “It’s not our job to guarantee a license. It’s our job to guarantee an open market where everyone can apply for one.”

In the last couple of years there have been 2 big issues that lawmakers have been divided on. One is the issue of same sex marriage and the other is Internet gambling. Recently a federal judge gave those who favored same sex marriage hope and now online gambling being legalized may be next.

In California Proposition 8 banned same sex couples from getting marries, which irked many in the liberal community of the state. However, Judge Vaughn R. Walker recently overturned Prop 8, as he claimed that the law was one that was unconstitutional. The ruling garnered praise across the United States.

Internet gambling may be the next issue on the agenda and there is a good chance it may be legal soon. Washington lawmakers have already begun writing a bill that would not only make online gambling legal, but it would also regulate the industry and that would reap the US government billions of dollars.

Recently Representative Barney Frank, who has been at the forefront of making online gambling legal, passed the legislation through the House Financial Services Committee. Taking the legislation to the House is the next step and that may not happen until next year since the legislative session will be in a recess soon. After the session break is over the focus will then shift to the mid-term elections, which are slated to take place in November of this year.

The issues of same sex marriage and online gambling have had lawmakers in the U.S. in a heated debate for some time. Earlier this year legislators in California have talked about regulating the Internet gambling industry. Millions of residents in the United States already play poker online and online poker has become a billion dollar industry.

The state of California is known as a very liberal state, which is why it is a tad surprising that they banned same sex marriage from the get go. For the Internet gambling issue the Govenator Arnold Schwarzenegger has been in favor of gambling expansion for most of his time as the Governor.

Other states in the U.S. have already considered regulating the Internet gambling industry. A couple that have been aggressive in passing the regulation are Florida and New Jersey, but neither of the states have passed any laws making online gambling legal. New Jersey would like to make Internet gambling legal so it can help the struggling land based casinos in Atlantic City.