Harry Reid Controversy May Change Online Gambling Landscape In US

The online gambling industry has been watching the fallout from Senator Harry Reid's comments from back in 2008 with anticipation of what might come next. With the GOP calling for Reid's resignation, the path to regulated online gambling in the US may become clearer.

Reid is one of the politicians that has been fighting against online gambling regulations in order to protect the gambling interests in his state of Nevada. With Reid out of the way, some analysts believe Rep. Barney Frank would have more of a chance of having his proposed Internet gambling legislation approved.

"There is no doubt that Senator Reid has been forthcoming in his plan to protect the Nevada casino industry, and one way to do that is to oppose online gambling," said Gaming Analyst Steve Schwartz, "If Reid were to step down, that may open the door a little wider for regulated online gambling."

Reid has been under the microscope because of remarks he made during the 2008 presidential race. Reid claimed Obama was "light skinned," and that he had "no Negro dialect." The Senator apologized to Obama for the remarks, and the president has said, "the book is closed," on the matter.

The likelihood of Reid steeping aside is slim, with most Democrats coming to his defense. The GOP is pushing for a resignation, but it appears to be no more than typical partisan banter.

Not all of Nevada's casino companies agree with the likes of Steve Wynn, who is a staunch opponent of Internet gambling regulations. Harrah's Entertainment has become the first of the Vegas corporations to start an online gambling site. The site is currently not accepting US players since its launch late in 2009.

Frank has proposed legislation that would overturn the Unlawful Internet Gambling Enforcement Act of 2006. Frank has much more support within Washington than he had during the Bush Administration when he proposed a similar bill.

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