Divided sharply along party lines, members of the House Financial Services Committee voted down the Payment Systems Protection Act.
The bill, sponsored by Barney Frank, Democrat of Massachusetts, and Ron Paul, the libertarian Texas Republican, would have prevented the Treasury Department and Federal Reserve Board from finalizing the proposed regulations for the Unlawful Internet Gambling Enforcement Act.
"The traditional 'family-values' Republicans defeated a common-sense measure that had nothing to do with the underlying issue of whether American adults should be allowed to freely gamble with their own money," Steven W. Adamske, a spokesman for Mr. Frank's office, told Interactive Gaming News in a telephone interview.
IGN's Take
It's a bit early to speculate on prospects for this legislation moving forward, but today's display of partisanship might suggest that the bill would stand a better chance if Democrats strengthen their majority in Congress.
-Mark Balestra, Publisher, Interactive Gaming News
Chris Krafcik is the editor of IGamingNews. He lives in St. Louis, Mo.