Democratic Policy Chairman Endorses U.S. Regulation of Internet Gambling

by Lou on February 29, 2008

Congressman George Miller (D-CA), chairman of the House Democratic Policy Committee signed on as a co-sponsor of the Internet Gambling Regulation and Enforcement Act. Introduced last year by Congressman Barney Frank (D-MA), this bill would allow licensed operators to provide Internet gambling services in the United States.

The Internet Gambling Regulation and Enforcement Act (H.R. 2046) and the Internet Gambling Regulation and Tax Enforcement Act (H.R. 2607), a companion bill introduced by Representative Jim McDermott (D-WA), would regulate and tax Internet gambling activity. Under the proposed legislation, each Internet gambling operator would be licensed by the Financial Crimes Enforcement Network (FinCEN) and required to ensure that the individual placing the bet or wager is physically located in a jurisdiction that permits a particular form of Internet gambling.

The legislation would reinforce the rights of States to control what, if any, level of Internet gambling was permissible within their borders, including the ability to apply additional taxes, and to ensure that appropriate consumer protections and limitations were in place.

According to a tax revenue analysis prepared by PricewaterhouseCoopers, taxation of Internet gambling is expected to generate between $8.7 billion to $42.8 billion in federal revenues over its first ten years.

“The endorsement of this key legislation by Congressman Miller, one of the most influential leaders on Capitol Hill, further demonstrates the growing support for regulated Internet gambling,” said Jeffrey Sandman, spokesperson for the Safe and Secure Internet Gambling Initiative. “We expect continuing momentum in Congress as more people realize that the current approach to prohibit Internet gambling is a failure. Rather than leave consumers vulnerable in an underground, uncontrolled marketplace, regulation of Internet gambling would protect consumers and generate billions in revenue needed for critical government programs.”

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