The Indiana Attorney general was not for the idea of Federal regulation of online casino gambling. In fact Greg Zoeller, the AG of Indiana, was more interested in allowing each state to make its own decisions about online gambling and regulating them according to the state laws. The AG opposed the bills proposed by Barney Frank and Jim McDermott which would regulate and license US online casinos.
Zoeller wasn’t against allowing US residents to play at online casinos, but claimed that each state should regulate online gambling much like they regulated the land based casinos based on their state laws.
According to Zoeller, federal intervention would circumvent and preempt the autonomy of state government. The bills presented before the Congress were likely to undermine the gambling enforcement powers of states.
The other topic of concern was that hundreds of millions of dollars in revenue from online gambling would be diverted to the Federal Treasury rather than the State Treasury. Gambling regulation has always been a matter of the state and Zoeller thinks that online gambling should also be left for the states to decide upon.