House Panel approves legalizing online gambling

"A House panel has approved a measure that would legalize online gambling and put the increasingly popular Internet-based activity under federal regulation, Dow Jones ($) reported Thursday.

The House Financial Services Committee voted 41-22 to approve the legislation, which now could be brought to the floor by the House Democratic leadership. Democrats could bring forth the measure as an addition to a larger bill later in the year rather than as a stand-alone one, aides said.

Online gaming Web sites could return to U.S. soil if the bill is passed. Currently, games such as online poker are banned, and though many Americans engage in it, the companies are stationed in other countries. PokerStars.com, the largest site, is based on the Isle of Man. The second-largest site, FullTiltPoker.com, is run out of the United Kingdom.

In 2006, Congress passed the Safe Port Act, which included a provision known as the Unlawful Internet Gambling Enforcement Act (UIGEA). It banned "unlawful internet gambling" and made it illegal for banks and credit-card firms to transfer funds to online-gambling companies. The financial sector says it effectively requires them to play police cyber transactions."

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