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McDermott launches tax bill that could reap up to $42 billion over 10 years

Washington Democrat Representative Jim McDermott has introduced an updated version of the Internet Gambling Regulation and Tax Enforcement Act of 2010, a bill that would ensure that applicable taxes and fees are collected from a regulated Internet gambling industry in order to raise much-needed revenue for federal and state budgets.

The most significant change from the previous version, introduced in 2009, is the addition of a provision that allows each State and Tribal Government to be paid six percent of all deposits placed by residents of their jurisdiction with licensed online gambling operators - a change that is expected to generate up to $30 billion over 10 years.

Furthermore, the legislation would assign 25% of the federal revenue collected on gambling operators - estimated at $42 billion over 10 years - to provide assistance to children in foster care.

According to the political publication The Hill, McDermott favoured the new provisions because "state government budgets have been hit hard by the recession and social services, like children's health insurance, are suffering."

The legislation is meant to serve as a companion to the Internet Gambling Regulation, Consumer Protection and Enforcement Act of 2009 (H.R. 2267), legislation introduced by House Financial Services Committee Chairman Barney Frank that would permit licensed operators to accept online wagers from individuals in the U.S.


New position statement confirms improvements in technology have improved the regulatory possibilities

The CardPlayer magazine interview with Frank Fahrenkopf, chief executive of the American Gaming Association, has been followed by a position statement from the trade association, which represents major land gambling operators.

Shifting its neutral position, the AGA statement confirms that it is "open to the concept of legalised Internet gambling, so long as there is a regulatory regime that is put in place that protects the consumer and protects the integrity of the game.

"After considerable study...our concerns about technology have been eliminated by advancements in the field, and the AGA believes that the technology now exists to properly regulate Internet gambling with appropriate law enforcement oversight and to provide appropriate consumer protections for individuals gambling online.

"However, the AGA also believes that existing laws do not adequately protect the millions of Americans who gamble online every day."

Fahrenkopf said the group might feel compelled to back legislation as momentum for regulation grows.

Source: InfoPowa News

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