Jim McDermott (D-WA) Introduces Companion Legislation to Barney Frank’s Bill

by Lou on June 10, 2007

Congressman Jim McDermott (D-WA), pictured right, introduced The Internet Gambling Regulation and Tax Enforcement Act last week as a companion bill to the Internet Gambling Regulation and Enforcement Act (IGREA) that Barney Frank (D-MA) introduced last month.

McDermott’s bill provides a taxing mechanism for online gambling providers that would be licensed under Barney Frank’s IGREA (H.R. 2046). Frank’s bill establishes licensing and enforcement procedures to regulate online gaming in the US.

Online gaming operators licensed by the Financial Crimes Enforcement Network (FinCEN) would pay two percent of funds deposited on that site if McDermott’s bill becomes law. Online gaming providers would pay the fee; it would not be taken from customer deposits. Firms offering online gaming would also have to collect federal and state taxes from licensees and individual gamblers.

Congressman McDermott expects his legislation to raise between $6 billion and $25 billion in revenues for the US Treasury in the first five years of enactment.

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