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[Giorgio]

Venture-backed start-ups operating in the three most popular forms of online gambling– poker, horse-racing and sports-betting–stand to see a major impact from congressional proposals that could legalize certain types of Web-based betting.

While the start-ups are keeping a close eye on the bills' progress, and in some cases positioning themselves for possible major changes, most believe that any new laws won't be enacted for at least another year, and possibly longer.

Gerard Cunningham, president of Betfair US, the world's largest legal online gambling company, said he wasn't confident that the bills would get a proper hearing in Congress anytime soon.

Congress is beginning to realize that there is a major source of taxable dollars it is missing out on.

Internet gambling revenue for offshore companies was estimated to be $5.9 billion in 2008 from players in the U.S. and $21 billion from players worldwide, according to gambling industry consulting firm H2 Gambling Capital.

In May, U.S. Rep. Barney Frank, (D., Mass.), unveiled a plan that would exempt operators that are licensed and regulated from an online gambling ban enacted in 2006 that made it illegal for banks and credit-card companies to make payments to online gambling sites.

Source: Start-Ups Hedge Bets On Internet Gambling - WSJ.com