Reid-Kyl Federal Bill Still Actual

But legalisation threatens with federal ban on internet gambling in general

After a year of rumors about a federal online poker legalisation bill set up by Democrat - Republican combination between Sens. Harry Reid of Nevada and Jon Kyl of Arizona have appeared again this week. The collaborative effort that the two are still making may not bring the result that the online gambling industry as a whole would welcome.

A federal ban on online gambling generally may be the quid pro quo for Kyl's support for legalised online poker - hardly surprising given Kyl's long record as an implacable opponent of internet casino action. Though, it is not yet known whether the Kyl-Reid team has plans to launch their bill in Congress this year.

It is also uncertain how the individual states that have traditionally defended their right to make laws on gambling would react, especially bearing in mind the possibility of online gambling revenues in the wake of the US Department of Justice's change of heart on the Wire Act.

Possible indicator of the line the Senators are taking was given last year, when they jointly wrote to Attorney General Eric Holder to oppose the attempts by certain states to legalise intrastate online gambling, a communication that was criticised by Ray Lesniak, a pro-internet gambling Senator from New Jersey.

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