US Mid Term Elections and Online Gambling

With the mid term elections taking place today, speculation is rife that Americans will cast a protest vote against an incumbent President Obama. This will result in the Republicans forming a majority within the House of Representatives and may have drastic implications for the online gambling industry.

Pending Online Gambling Legislation

If the Democrats somehow salvage the election and gain more votes than predicted it is generally felt that the online gambling legislations currently in the pipeline will come to fruition and the industry will finally achieve legal status.

The Republicans, however, who generally view gambling as a social pariah, are likely to put the pending regulation of the online gambling industry on ice if they gain the upper hand on November 2.

It should be recognized too that the issue of the legalization of online gambling does not have a simple split between parties; although Democrats tend to be pro gambling there is support within the Republican Party too. Generally though, it is liberals who have put their support behind the pro gambling lobby.

Overturning the UIGEA

Barney Frank has been spearheading the legislative drive to overturn the Unlawful Internet Gambling Enforcement Act (UIGEA) but the future of his bill is dependent on adequate support within the House of Representatives.

Frank's HR 2267 bill proposes a regulatory framework for the online gambling industry that would not only put customer safeguards in place but is also projected to raise $42 billion USD in tax revenues over the next 10 years.

Not only does the US economy sorely need an injection of income but US gamblers and operators are desperate to end the restrictions inflicted by the UIGEA.

All eyes are therefore on the mid term election results which will seal the short term fate of the online gambling industry.