Rep. McDermott Introduces New Internet Gambling Legislation

by Lou on June 23, 2011

Last week Representative Jim McDermott (D-WA) introduced the Internet Gambling Regulation and Tax Enforcement Act of 2011 (H.R. 2230), which would ensure that taxes and fees are collected from wagers placed over the Internet in order to raise revenue for federal and state budgets. McDermott’s bill was cosponsored by Reps. John Campbell (R-CA) and Barney Frank (D-MA).

McDermott’s legislation is meant to serve as a companion to the Internet Gambling Regulation, Consumer Protection, and Enforcement Act (H.R. 1174), which was introduced earlier this year by Rep. John Campbell (R-CA). This bill, which includes language identical to what was overwhelmingly approved last year by the House Committee on Financial Services, would implement practical and enforceable standards to control Internet gambling activity and protect consumers.

H2 Gambling Capital, the leading supplier of data and market intelligence regarding the global gambling industry, projected in a report released last year that regulating all forms of Internet gambling except sports wagering in the U.S., would generate a gross expenditure of $67 billion over five years and 25,470 new jobs.

“Given the clear need to support our nation’s economic recovery, Congress should embrace this bi-partisan supported approach to regulate an industry that would spur economic growth and allow adults to do in their homes what they can already do in land-based casinos,” said Michael Waxman, spokesperson for the Safe and Secure Internet Gambling Initiative.  “There is simply not a reasonable argument that can be made for keeping a failed prohibition in place, unless you are simply interested in imposing your moral beliefs on others.  Regulation is the only way to protect consumers and capture significant benefits from an already thriving underground industry where all the economic benefits of the activity are lost to offshore operators.”

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