Online Gaming Would Create 32,000 Jobs

by Lou on April 20, 2010

A new study by H2 Gambling Capital finds that regulating all forms of Internet gambling in the United States would create close to 32,000 jobs and $94 billion in gross expenditures over five years, along with $57.5 billion in tax revenue from projected wagering activity, related job creation, and growth of supporting businesses over the same period. This is a sharp departure from previous projections, which forecast a total of $72 billion would be collected from license fees and other applicable federal and state taxes in a regulated environment over ten years, exclusive of sports betting.

“This analysis further reinforces the fact that a regulated environment will pay dividends throughout the economy,” said Michael Waxman, spokesperson for the Safe and Secure Internet Gambling Initiative. “With unemployment nearing 10 percent, this study sends a clear message to policymakers that Internet gambling regulation is a common-sense way to immediately stimulate the economy, create close to 32,000 jobs and raise billions in much-needed new government revenues.

“We believe the significant job and revenue creation potential provides an immediate incentive for the Obama Administration and Congress to act quickly to regulate Internet gambling,” added Waxman. “Leaving in place a failed prohibition should no longer be the government’s misguided policy approach, leaving millions of Americans vulnerable as they continue to find a way to gamble online in a thriving underground marketplace.”

Internet gambling regulation is anticipated to benefit existing land-based casinos around the country. Access to this new market as a source of an alternative revenue stream for existing businesses is likely to have been one of the factors that led the American Gambling Association last month to announce support for Internet gambling regulation.

Rep. Barney Frank’s pending legislation would allow licensed gambling operators to accept bets and wagers from individuals in the US. It would also mandate a number of significant consumer protections and reinforce the rights of each state and tribal government to determine whether to allow Internet gambling activity for people within their jurisdiction.

A companion to Chairman Frank’s bill, the Internet Gambling Regulation and Tax Enforcement Act of 2010 (H.R. 4976), introduced by Rep. Jim McDermott (D-WA), is projected to generate $42 billion in new federal government revenues and $30 billion in new state government revenues over 10 years. The primary source of the revenue would come from ensuring applicable taxes and license fees on regulated Internet gambling activities are collected.

Without sports betting, H2’s model suggests a gross expenditure of $67 billion over five years that would generate $30.8 billion in tax revenue. Under this scenario, 25,470 new jobs would be created over five years.

Comments on this entry are closed.

Previous post:

Next post: