As I’ve written and told others repeatedly, online gambling will be legalized in the United States. Yesterday Barney Frank (D-Mass.), chairman of the House Financial Services Committee proposed the Internet Gambling Regulation and Enforcement Act (PDF) which acknowledges that despite the ban six months ago internet gambling is here to stay and seeks to provide guidelines for regulating the industry instead. Hat tip to 901am.

Frank argues that because nearly all states already permit some form of traditional gambling–including lotteries, betting on horse and greyhound racing, and sports wagering–the federal government should legalize and regulate the online equivalents. Instead of a blanket legalization, his legislation would require the Treasury Department to police the industry and ensure that it takes adequate steps to identify minors and compulsive gamblers.

Frank is right.

The way the internet gambling ban was jammed onto legislation for securing our ports was sleazy politics. I believe we’re a couple years away, but it wouldn’t surprise me to see by 2010 a legal, licensed internet casino in the US. What will this mean for terrestrial casino hotspots like Las Vegas? Only that these casinos, too, will have to find other ways to encourage people to travel instead of gambling from their homes.

No idea if Frank’s proposal will be passed but if/when it does I’ll delight in seeing somebody challenge the current legislation here in Washington state that makes it a Class C felony to gamble online. The sposors of the bill said it was meant to “protect” gamblers, not punish them. Sorry if I’m skeptical of any form of government protection. I can protect myself just fine, thank you very much.

Do any readers want the US government to protect them like this?

• On June 7 online gambling becomes felony in Washington state
• U.S officially closes the sports … book on BetOnSports
• 60 Minutes special focuses on internet gambling
• Bush signs anti-gambling legislation
• Google, Yahoo and Microsoft ante up $31.5 million in fines for promoting online gambling
• Government getting heavy handed over running internet gambling ads