Congressional Committe Cites $42 Billion in Available Revenue thru Legalized Online Gaming

by Lou on October 31, 2009

The Wall Street Journal reported that an analysis by (pictured left) Rep. Jim McDermott’s (D-WA) Joint Committee on Taxation found that—HR 2267—introduced by Representatives Barney Frank (D-MA) and Jim McDermott (D-WA), would generate nearly $42 billion over 10 years.

“This analysis further reinforces the fact that a regulated environment will generate billions in new revenue to offset the costs of health care reform or other vital government programs,” said Michael Waxman, spokesperson for the Safe and Secure Internet Gambling Initiative. “With the completed analysis, and support for Internet gambling regulation growing daily, it’s only a matter of time before Congress acts and begins allocating the billions in new revenue sitting on the table to one program or another.

“We believe this tax revenue analysis will encourage immediate discussions and consideration of pending legislation to regulate Internet gambling,” added Waxman. “With everyone acknowledging that attempts to prohibit the activity have failed, this provides even more incentive for Congress to act.”

Since its introduction in May, House Committee on Financial Services Chairman Frank’s bill has attracted a bipartisan group of more than 60 co-sponsors has signed onto the bill.

Chairman Frank’s legislation would permit licensed gambling operators to accept wagers from individuals in the US, while putting a series of consumer protections into place. These include safeguards against compulsive and underage gambling, money laundering, fraud, and identity theft, along with the right of each state to determine whether to allow Internet gambling within their state.

Rep. McDermott’s Internet Gambling Regulation and Tax Enforcement Act (HR 2268), a companion bill, raises revenue through individual and corporate taxes and license fees on regulated Internet gambling. This potential revenue—millions US-based players wager more than $100 billion online annually—is currently uncollected.

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