The subject of legalizing gambling online has been taboo in the past but huge budget deficits and the struggling economy has brought the debate back.

Proponents say regulation of online gambling could ease the government cash flow problem. The American Gaming Association says governments could collect between $8 and $15 billion dollars in taxes by regulating Internet gaming. Right now the law does not ban online gambling sites but it bans the transfer of funds.

For years casino giants like Harrah's and Station Casinos have pushed to legalize online gambling. The debate has mostly fallen on deaf ears until now, according to Tony Fontaine.

"Years ago I said, 'if you ever want to see a national Internet lottery, wait until Social Security goes bankrupt,'" said Fontaine. He is a key speaker at the Gaming Technology Summit which started in Las Vegas on Wednesday.

Three months ago he started propickracing.com and before that he led Station Casinos' effort for online sportsbetting. His new website allows anyone with an account to bet horse racing online. Horse wagering is an exemption to the act that banned transactions for online gambling.

"What we are seeing now is less the warming up to Internet gambling as the social entertainment value, as perhaps a way to increase and augment our coffers in a way that is less painful to the people that are paying for it," Fontaine said.

"Each time that there is some sort of shift or change in economies, whether they be state, local, or federal. I think these things get back on the table as far as a rational discussion," said Tim Stanley, Tekexecs founder.

Tim Stanley used to run Harrah's gaming and technology before starting his own consulting firm. He thinks regulated Internet gambling could be a win-win for the government and Las Vegas based gaming companies. Rep. Barney Frank of Massachusetts introduced a bill that would do just that.

"I think what you are seeing here is legislators scratching their heads and saying OK, we have pretty much taxed out the population, we have a massive deficit, what can we do to really raise money?" Fontaine says this year it may actually have a chance to pass.

The bill that would allow regulated online gaming will go to a U.S. House committee before it could go to the full house of representatives. No hearing date has been set.

This article is a reprint from LasVegasNow.com. To view the original story, click here.