Nobody is jumping their guns just yet. However, there is certainly a wave of optimism in the online gambling industry following a confirmation that U.S. House Financial Services Committee Chairman, Barney Frank, is drafting legislation that would repeal the Unlawful Internet Gambling Enforcement Act (UIGEA) passed in 2006. Although rumors have been circulating for two weeks that Frank was working on a repeal, Frank himself had not denied or confirmed the rumors.

The Financial Times was the first to confirm Frank's objective, which he made visibly clear by referring to the UIGEA as the "stupidest law ever passed". Just how the Democrat Senator plans to usher an appeal was not elaborated on. Frank merely referred to the "internet gambling thing" as a "preposterous" measure which he plans to cut back. And while Frank has support from other high profile politicians like House Judiciary Committee Chairman, John Conyers, nobody can be certain whether they will be supported from the rest of Congress.

The largest uncertainty is whether or not Congress will be open to regulating the online casino gambling industry. In order for the UIGEA to be repealed, there will likely need to be some sort of regulatory framework to fill its place. But with a mid-term Democratic majority now in power, the prospects of that happening are looking much better.

In the meantime, stocks of several online casino gaming companies have taken a small upward jump and the U.S. Treasury continues to fuddle with rules drafts in order to implement the UIGEA - even though the deadline for completing the draft has been passed. The Treasury is hoping to present the draft some time in March or April, some time after which the UIGEA would presumably go into enforcement.