The issue of legal online gambling in the U.S. has long been on the mind's of players, politicians, operators and industry insiders. This week, it was introduced to the rest of the U.S. public.

An article published in Sunday's New York Times chronicled the history of the battle over legal gambling in the U.S., from the Wire Act of 1961, which prohibits wagering over telecommunications systems that cross state or national borders to the Justice Department's current hardline anti-gambling stance on the grounds that legal online gambling will promote addictive wagering and will be impossible to license and tax, among other arguments.

But the article's real focus was the fact that internet gambling might provide a budget solution to those states hardest hit by an economic crisis that, for some, shows no signs of letting up.

Unfortunately, the above mentioned history, and several of the laws and arguments made in between 1961 and the present, have created a situation wherein the legality of interstate gambling is nebulous at best.

The UIGEA of 2006 further strengthened the illegal angle by prohibiting businesses from taking the proceeds of illegal bets placed over the Internet, but also appeared to carve out an explicit exception for states who wished to run online gambling operations.

More than a few states are now betting on that exception.

District of Columbia residents, for example, travel to neighboring states to bet in live casinos where gambling is legal. This activity generates millions of dollars in revenue each year. Naturally, DC, which has more than its share of budget woes, wants a piece of the action. The District aims to introduce an internet gambling bill that will allow Washington residents to play poker, blackjack and other casino games by year's end.

Iowa is studying the proposed DC bill, and other bills are pending in Massachusetts and California.

The NY Times article quoted Mark Hichar, a lawyer specializing in gambling law at Edwards, Angell, Palmer & Dodge in Boston, who noted that online gambling's legislative history was "a real head-scratcher.”

Washington's politicians may be scratching their heads, but state legislators and casino operators are not wasting time waiting for a definitive answer from the Justice Department.

Illinois passed a law two years ago that permitted its lottery online. According to John Cullerton, President of the State Senate, the state then asked for Department of Justice approval. It has yet to receive a response, suggesting acquiescence and / or tacit approval.  

Operators aren't being bashful either. Land-based casino powerhouse turned online casino giant, Harrah’s Entertainment, is now placing ads in US newspapers and TV commercials in anticipation of future legalization. The casino group has already launched a successful poker room and online casino for international players, and is targeting U.S. players with its "play for free" website.
 

According to Harrah's reps, the goal is to prepare for legalization by capturing a U.S. audience that will migrate to the poker room and online casino at the moment approval is given.

In short, it looks like the once very high anti-gambling walls in the U.S. are crumbling. The reason, according not just to the NY Times but to anyone feeling the sharp sting of the seemingly terminal U.S. recession, is simple: money. As the saying goes, it makes the world - in this case, the world wide web - go round.
 

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