The House Financial Services Committee met and discussed H.R. 5767 which would have required a separate law defining unlawful internet gambling. The vote was 32 votes in favor and 32 votes against, which means the measure failed.

Rep. Spencer Bachus (R-Ala.), the ranking Republican on the committee was the focal point of conversation late today in the online gambling community when he called members who are trying to reverse this law criminal enterprises. Rep. Bachus said, “You represent a criminal enterprise. I will tell you that the internet sites which are attempting to reverse this ban are criminal enterprises.”

Earlier in the day Gambling911 reported that Rep. Spencer Bachus (R-Ala.), in a American Banker editorial, published information that was filled with a lot of misinformation. Jeffrey Sandman, spokesman for the Safe and Secure Internet Gambling Initiative had this to say; “It is unfortunate that Rep. Bachus is using scare tactics to argue for the continued prohibition of Internet gambling,”

Ron Paul (R-Tx) spoke to the committee about how the United States Government could open up a can of worms by regulating portions of the internet.

Barney Frank (D-Ma) is the Chairman of the House Financial Services said, "The financial institutions are in the position of being told not process bets, but it's not clear what is legal and what is illegal, He said financial institutions had been given "a job that is undoable."

Casino City Times called today's hearing a blow to both the banking industry and the online gambling industry. " The defeat is a blow to both the online gambling industry, which has been looking for ways to repeal the UIGEA, and the banking industry, which wants no part in trying to regulate the online gaming industry."

The Online Gambling Paper reported that H.R. 5767 outcome was meaningless to online gambling industry. "First and foremost - the UIGEA is an empty law. The framework is there, but the most important parts - the regulations - have missed deadline after deadline, it's like a car without tires - technically a vehicle, but useless."

The Poker Players Alliance issued a statement, blasting the Financial Services Committee for failing to clarify what constitutes ‘unlawful Internet gambling’ under the Unlawful Internet Gambling Enforcement Act (UIGEA). “Unfortunately, debate over the morality of gambling trumped debate on the fact that UIGEA is completely ineffective and unenforceable.”

One thing that is obviously clear is the online gambling debate will continue with no quick resolution ahead.