The measure, bankrolled by Representative Barney Frank, chairman of the House Finance Services Panel , would roll back a law engineered to block such gambling.

That four-year-old law, which took effect in June, bars banks from processing payments to offshore betting web sites. Frank and other fans ,eg the Poker Players coalition, say licensing and controlling online betting will protect patrons who are placing an increasing number of gambles with offshore operators. "With this bill, in one broad stroke, we're going to allow each kid in America to bet on their home PC or in their dormitory room,"Bachus declared. Bachus asserts the income guesses for the suggested taxes on gambling are swollen because they presume all states would take part. The panel also licensed amendments to help stop children from betting online and proscribe advertising that targets youth.

"I have opposed this bill for a long while but I'm gently changing, said Representative Brad Sherman, a California Democrat. With both Left wingers and Republicans supporting the bill in yesterday's council vote, the bipartisan backing adds momentum to the legislation, said John Pappas, executive director of the Poker Players coalition. The focus now shifts to the law to tax the gambling, which is before the House Techniques and Means Panel , he claimed. Senator Robert Menendez, a New Jersey Left winger , introduced a bill in the Senate last year that would legalize less kinds of betting, including poker. The House legislation "may be a little too broad for the Senate to tackle,"claimed Pappas. The US offshore Web betting market is predicted to climb to $5.7 bln in 2010 from $5.4 bln last year, according to U.K.-based H2 Betting Capital, which supplies information on the industry. If the US legalizes the betting, the market could grow to $24 bln in 5 years, according to H2. The most important offshore betting sites for US players include PokerStars, based in Isle of Man, and full-tilt Poker, based in Eire , according to H2. Critics of the 2006 law engineered to bar the wagers say it makes no difference between legal and illegal online gambling. Under Frank's suggestion, licensed betting companies would be required to have protects to guard against underage and compulsive betting and to stop folk from placing wagers online in states that forbid it. The bill to tax online betting is financed by Representative Jim McDermott, a Washington Left winger and member of the tax-writing Ways and Means Panel . The Fed. treasury also would collect taxes on gaming-company profits, and bettors would pay tax on prize.