UIGEA doomed to fail according to AGA chief Frank Fahrenkopf

Frank Fahrenkopf, who heads the American Gaming Association, doubts that the Unlawful Internet Gaming Enforcement Act (UIGEA) will stop U.S. gamblers. "They will continue to bet,” he said, adding “They'll find other means to get their money to these offshore sites."

The American Gaming Association, which represents casino operators, believes demand will force Congress to eventually permit regulated online gambling.

According to Fahrenkopf, "Money always has a way of finding its way to where it wants to go, so that's why I'm hopeful that the legislators, even those legislators who are opposed to all forms of gambling, will realize, number one, they're not going to stop it. Prohibition has never worked in this country. It's better to regulate it. It's better to control it, it's better to tax it."

While government officials charged with writing the regulations in support of UIGEA, the American Gaming Association estimates $5 billion is still being bet online by U.S. residents.

By comparison, other countries are easing restrictions. Instead of prohibition, the U.K. is about to regulate online gaming in order to generate tax revenues, jobs, capital formation and provide protection to online players. British authorities are worried that that UIGEA could drive the industry underground.