The U.S. House Financial Services Committee Chairman Barney Frank.has introduced a legislation to reverse a three-year-old ban on Americans using online betting.

The Internet Gambling Regulation Consumer Protection & Enforcement Act will now create a federal regulatory and enforcement framework for online gaming.

According to Barney Frank this legislation will provide the U.S. Treasury Department the authority to establish regulations and license Internet gambling operators. If the bill comes into affect, then the Treasury will also get the authority for revoking or terminating the license of any operator who violates the law. It will also be able to levy fines on the defaulters.

“The government should not interfere with people’s liberties,” said Frank.

Frank, a Massachusetts Democrat, told reporters about his plan to introduce a separate legislation to stop the implementation of online gambling regulations from Bush administration era. Companies like PartyGaming Plc and 888.com are involved in this issue.

During Bush, Congress made payment by banks and credit card companies to online gambling sites illegal. Many European online gambling firms lost billions of euros due to the bill. At that time Republicans controlled the White House and Congress but now Democrats has the control in both of them. How the Obama administration will handle it is not clear till now.

Frank’s bill drew the expected criticism from a senior Republican lawmaker

“Illegal off-shore Internet gambling sites are a criminal enterprise,” said Representative Spencer Bachus, the top Republican who is on the financial services committee. “Allowing them to operate unfettered in the United States would present a clear danger to our youth, who are subject to becoming addicted to gambling at an early age.”

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