The online gambling bill recently introduced by Barney Frank has not yet been reviewed, negotiated upon, or revised; the standard phases every bill must encounter before passing into law.  However, as it stands, it has raised the eyebrows of a few gambling experts.

I. Nelson Rose is very concerned about the bill that is supposed to regulate and legalize online casinos in the United States.  Rose is believes that there is language in the bill that could potentially be used to allow the United States government to show favoritism to United States based online casinos and gambling companies.

The problem with that is Frank’s bill is supposed to do more than just give American’s their personal freedom to gamble from home at online casinos.  Eyes all around the world are watching patiently to see the outcome of this bill.

American trade partners, particularly the European Union, have been very dissatisfied with the protectionist mindset that the United States has had against online casinos.  If this bill continues to promote protectionism, the United States may find themselves in from of the World Trade Organization.

One line in particular has caught Rose’s attention.  A clause in the bill says the United States may strip the gaming license away from any company that is found to be “delinquent in filing any applicable Federal or State tax returns or in the payment of any taxes, penalties, additions to tax, or interest owed to a State or the United States.”

Rose observes that this clause could apply to any company that has ever accepted wagers from the United States if the Treasury decides taxes are due on those business transactions.