Online gambling ban reconsidered

WASHINGTON (Reuters) - U.S. Rep. Barney Frank is considering a bill to repeal a ban imposed last year on online gambling, said a spokesman for the lawmaker on Wednesday.

"Chairman Frank is considering legislation," said Steven Adamske, spokesman for the Massachusetts Democrat, who chairs the House of Representatives Financial Services Committee.

Adamske said Frank is still thinking over the issue, has not drafted a bill and has no timetable for action.

The legality of Internet gambling in the United States was ambiguous for many years, but it was effectively banned last October when President George W. Bush signed legislation from Congress outlawing gaming financial transactions.

The ban hammered the stock values of online gambling companies, such as PartyGaming Plc.

U.S. prosecutors have since launched a probe into Internet gambling. The U.S. Department of Justice has demanded information from some of the world's biggest investment banks as part of the investigation, according to banking sources.