An online gambling bill that could blunt the impact of legislation outlawing online gambling will die in committee in part because of the capital markets bailout hearings currently taking place in Washington, D.C.

The bill, the Payments System Protection Act of 2008, was approved by a 30-19 vote in the House Committee on Financial Services a little over two weeks ago.

It was scheduled for a vote in the House of Representatives but the financial crisis on Wall Street relegated the bill to the congressional back burner.

With a hotly contested election just a month away, it is fairly certain that the legislation will not get to a vote. So the bill’s sponsors, led by Rep. Barney Frank, chairman of the House Financial Services Committee, must start all over next year.

Every bill that is not voted into law at the end of a congressional term must be reintroduced if the sponsors remain committed to thelegislation.

“The committee vote is a strong endorsement for moving this piece of legislation forward, and I expect it to be reintroduced in Congress,” said Michael Waxman, a spokesman for the Safe and Secure Internet Gambling Initiative. “We have every indication that the next congress will be even more favorable toward this bill.”

Current law places the burden of determining which transactions are related to online gambling on financial institutions. Banks have balked at being given that burden. The bill, if passed, would relieve banks of that responsibility.