Is the USA missing the revenue boat?

by Lou on July 14, 2006

In my opinion, The House of Representatives folded a $6-billion hand by passing legislation aimed at killing online gaming in the United States. 799.

Although unsuccessful in the past with similar legislation, the House passed this bill by a vote of 317 to 93, adding the Internet to the 1961 Wire Act. If enacted into law, the bill would make it a felony to transmit bets by wire or online. The bill now moves to the Senate for consideration there.

The U.S. government walked away from a chance to regulate online gambling and gather the tax revenue from the $6to $12 billion that’s estimated to be generated by online gambling in the U.S.

The Brits took a different tack and opted for regulation rather than prohibition. As a result they will reap a harvest of tax revenue as well as see more capital formation in the UK and more online gaming sites going public in the UK and listing on the London Exchange. Jobs are created too, and economic benefits will accrue to the Brits because they opted to regulate online gaming rather than follow a course of prohibition, a course that carries a history of failure.

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