The eyes of the world, literally, are on the Democrats in power in Washington to see what they will do with online casinos this year.   Now is the time for Democrats to reverse the Unlawful Internet Gambling Enforcement Act; a law passed during the Bush Administration that has been a point of serious protest among US international trade partners.

While Representative Barney Frank has in the past asserted that online casinos will be legalized and regulated in the United States by the end of the year, there are other signs showing the Democrats may buckle and miss their opportunity to regulate online casinos.

The decision of Senator Ron Wyden to withdraw his proposal to use regulated online casinos as a means of funding the ambition health care reform being promoted by President Barack Obama is very disconcerting.  Senator Wyden’s proposal would have worked in the favor of both controversial issues.  It would have been especially useful to online casinos.

The legislation introduced by Barney Frank to regulate online casinos has received tremendous support.  There are currently 58 representatives attached to the bill as cosponsors.  But Senator Wyden’s proposal would have been additional cause to support the measure and the type of cause that matters to politicians; a financial cause.

It is clear the some are disappointed with Wydens decision.  The presence or absence of Wyden’s proposal does not make or break the destiny of online casinos in the United States but it certainly would have been useful.

“It’s a great idea,” said Frank. 

“Why should we leave all that money untaxed?”