MGM Mirage, Harrah's Entertainment Inc. and other U.S. casino operators are increasing pressure on Congress to consider legalizing online gambling -- at the same time lawmakers are seeking to tighten criminal penalties for it, according to an article published today by Charlotte Observer.

The companies are trying to take advantage of a congressional backlash against gambling triggered by the Jack Abramoff scandal, involving his lobbying on behalf of Indian casinos.

The casinos say the best way to control the $12 billion Internet betting business -which is based overseas while drawing more than half its revenue from the U.S.- is to regulate and tax it.

"The argument the industry is making is, if it is being done offshore, why not bring it in to the U.S. so it can be regulated?" says Sen. John Ensign, a Nevada Republican who has discussed the issue with representatives of Las Vegas-based Harrah's, the world's largest casino owner.

The companies, which according to Federal Election Commission records have so far contributed more than $900,000 to congressional candidates in this fall's elections, are pushing lawmakers to take a first step toward legalization by creating a federal commission to study it.