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US Rep. introduces revised Internet gambling bill

Online GamblingOnline Gambling: US Rep. introduces revised Internet gambling bill
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WASHINGTON, D.C. — In March, Rep. Jim McDermott (D-WA) announced that he was re-introducing legislation to tax licensed Internet gambling in the U.S.

The bill, known as the Internet Gambling Regulation and Tax Enforcement Act, is a companion to legislation introduced by Rep. Barney Frank that would license and regulate online gambling. Rep. McDermott's bill includes new provisions that weren't in the original version introduced in October, including a revenue incentive for States that could generate up to an estimated $30 billion for state coffers on top of the $41 billion in revenues for the federal government.

The legislation also includes a new incentive Native American tribes to participate, and new revenue set-asides, including a 25 percent designation for children in foster care.

"Legalizing, regulating and taxing internet gambling just makes sense" Rep. McDermott said. "Right now, the U.S. loses billions of dollars to off-shore gambling and illegal gambling rings because of an unrealistic and virtually unenforceable policy. The current prohibition of online gambling has failed and made countless Americans vulnerable to fraud, identity theft and money laundering. This revised legislation will help States — which are facing budget crises all their own — collect much-needed revenue, and will help provide the foster care system with more resources as well. This legislation will help protect consumers and help both the federal and state governments recoup billions of dollars that now flow offshore."

The revised bill includes four new provisions:

  1. A revenue incentive for the states and tribes to participate through a 6% tax on gambling deposits that flows to them;
  2. Two new revenue set-asides that would designate 25 of the generated funds for foster kids, and 0.5 percent for historic preservation and the arts;
  3. Tax measures to encourage illegal gambling service providers to operate legally; and,
  4. Ensuring that Internet gambling is not part of the current tax exemptions on horses, dogs, and jai-alai.

Banks would also likely benefit from legalization and regulation as they have been given an impossible task: starting this summer, they will need to certify that every credit card charge made by a consumer is not being used for illegal online gambling. Legalization and regulation of online gambling will take this onerous task out of banks' hands and prevent them from facing yet another challenge.

The bill protects Americans who today gamble online at locations that provide little or no protection against fraud and other scams. As a whole, the Frank and McDermott bills ensure the collection of existing taxes on income that was moved off-shore and made off-limits under the Bush administration.

Thanks to Harve$t Moon for the tip.

Press Release

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31 comments. Last comment 7 years ago by tiggs95.
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Chattanooga, TN
United States
Member #74194
May 5, 2009
74 Posts
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Posted: May 17, 2010, 8:13 am - IP Logged

If they can make it work for people to actually win money and the states, to make some tax money... so be it, as for the federal government... they need no more taxes because they will still spend what we don't have.

I am all for protection of people online but it is just another regulation, taxation, that will in turn generate more needed government programs to monitor.... and in turn might cost more than it makes.

This I am afraid will open the door to an internet tax on all online purchases...

"The future is already taxed" Adam C. 2010...

    rollback01's avatar - moon
    New Member
    Detroit,Michigan
    United States
    Member #90511
    April 29, 2010
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    Posted: May 17, 2010, 8:36 am - IP Logged

    If they can make it work for people to actually win money and the states, to make some tax money... so be it, as for the federal government... they need no more taxes because they will still spend what we don't have.

    I am all for protection of people online but it is just another regulation, taxation, that will in turn generate more needed government programs to monitor.... and in turn might cost more than it makes.

    This I am afraid will open the door to an internet tax on all online purchases...

    "The future is already taxed" Adam C. 2010...

    They would have to come out with a internet type of card or an type of bank card that is already taxed you thank?

      joshuacloak's avatar - Money Swim-uncle-scrooge-mcduck-35997717-677-518.jpg

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      February 12, 2006
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      Posted: May 17, 2010, 8:39 am - IP Logged

      am all for making ever thing legal

      however new tax's, hell no

      the govt are rackless children with money, they don't earn anything them selfs, and send our money as if children in a toy store

      they only have mom&dads credit card with unlimited credit line

      , spend happy nuts

       

       

      i say kill all tax's and make the govt by force small as can be

        Jack-C's avatar - us
        San Diego, CA
        United States
        Member #61467
        May 24, 2008
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        Posted: May 17, 2010, 9:02 am - IP Logged

        The bill is H.R. 4976.  You can follow its progress by going to thomas.gov.

          Captain Lotto's avatar - CaptLotto
          Jefferson City, MO
          United States
          Member #55250
          September 20, 2007
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          Posted: May 17, 2010, 9:23 am - IP Logged

          There is already a national "pool" for states to tax internet purchases which several have joined.  Many more have considered it this year and will probably opt-in next year. 

          The big argument is that locals who pay taxes can't compete with box houses that don't.

          Captain Lotto

          "Every day is a good day!"

            dpoly1's avatar - driver
            PA
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            Member #66141
            October 16, 2008
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            Posted: May 17, 2010, 9:39 am - IP Logged

            It is high time for FORMER Rep. Jim McDermott (D-WA)!


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              January 11, 2009
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              Posted: May 17, 2010, 9:41 am - IP Logged

              There is already a national "pool" for states to tax internet purchases which several have joined.  Many more have considered it this year and will probably opt-in next year. 

              The big argument is that locals who pay taxes can't compete with box houses that don't.

              How bout we do this: how bout we toss the bums out come November especially Barney Frank given the way he denied envolvment in the banking crisis....and I'm gonna listen to this guy?

              Heck no I'm not!

              Our whole tax structure has been broke because of reckless intervention by the very ones we put into office....the states have to create all these vast lottos as a means to create revenue due to all the middle class jobs that have been lost to China/Mexico...

              Always look for washington politicians to put a spin on things...

                Captain Lotto's avatar - CaptLotto
                Jefferson City, MO
                United States
                Member #55250
                September 20, 2007
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                Posted: May 17, 2010, 10:16 am - IP Logged

                I understand the anti-tax argument, but how do you guys feel about legal Internet gambling?

                Captain Lotto

                "Every day is a good day!"

                  Todd's avatar - Cylon 2.gif
                  Chief Bottle Washer
                  New Jersey
                  United States
                  Member #1
                  May 31, 2000
                  23277 Posts
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                  Posted: May 17, 2010, 12:11 pm - IP Logged

                  I understand the anti-tax argument, but how do you guys feel about legal Internet gambling?

                  The crime should not be Internet gambling -- rather, it should be a crime to tell people what they can and can't do with their own money.

                  I know the government looks at any form of gambling as a new revenue stream, but in reality any taxes should exist on Internet gambling only in large enough amounts to self-fund the regulatory body necessary to prevent scams.

                   

                  Check the State Lottery Report Card
                  What grade did your lottery earn?

                   

                  Sign the Petition for True Lottery Drawings
                  Help eliminate computerized drawings!

                    sully16's avatar - sharan
                    Ringleader
                    Michigan
                    United States
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                    October 28, 2009
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                    Posted: May 17, 2010, 12:26 pm - IP Logged

                    The crime should not be Internet gambling -- rather, it should be a crime to tell people what they can and can't do with their own money.

                    I know the government looks at any form of gambling as a new revenue stream, but in reality any taxes should exist on Internet gambling only in large enough amounts to self-fund the regulatory body necessary to prevent scams.

                    I Agree!  Thank you !

                    Did you exchange a walk on part in the war ?

                    For a lead role in a cage?

                     

                                                                From Pink Floyd's " Wish you were here"

                      ThatScaryChick's avatar - x1MqPuM
                      Idaho
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                      November 21, 2007
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                      Posted: May 17, 2010, 12:40 pm - IP Logged

                      The crime should not be Internet gambling -- rather, it should be a crime to tell people what they can and can't do with their own money.

                      I know the government looks at any form of gambling as a new revenue stream, but in reality any taxes should exist on Internet gambling only in large enough amounts to self-fund the regulatory body necessary to prevent scams.

                      I also agree with this! Yes Nod

                      "No one remembers the person who almost climbed the mountain, only the person who eventually gets to the top."

                        mjwinsmith's avatar - moon

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                        Posted: May 17, 2010, 12:45 pm - IP Logged

                        The crime should not be Internet gambling -- rather, it should be a crime to tell people what they can and can't do with their own money.

                        I know the government looks at any form of gambling as a new revenue stream, but in reality any taxes should exist on Internet gambling only in large enough amounts to self-fund the regulatory body necessary to prevent scams.

                        The crime should not be Internet gambling -- rather, it should be a crime to tell people what they can and can't do with their own money.

                        I totally agree, are you idiots in Washington listening?

                        Tea Party, Coffee Party any other party, it's our rights as Americans.... are you idiots in Washington listening??

                        It's Our Freaking Money; we can do with it What the Freak we want.

                        I am sick of these boobs in Washington telling US what the freak we can do with our money!

                        We earn it; we pay tax on it so we can do whatever we want. I might point out that before the ban on Internet gambling and money that we earned, oh what a nice term "EARNED" was spent right here in the good old US of A, so it helped the economy. You jerks put a stop to it and so goes the economy.

                        Now don't get me started on the oil companies headquartered overseas that just had a hand in the biggest oil spill in America that petioned a court to limit it's liability...what are you going to do about that MR Representative? 

                        Spend less time telling US what we can do with our money and more time  doing what we sent you to Washington to do.

                        >Michael

                          Lotterologist's avatar - lightbulb
                          Lotto City, Michigan
                          United States
                          Member #36256
                          March 30, 2006
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                          Posted: May 17, 2010, 12:55 pm - IP Logged

                          They shouldn't have outlawed internet gambling in the FIRST place, then they wouldn't have to be GOING through this ignorant mess!!!!!

                          "Prediction is very difficult, especially about the future."----Niels Bohr

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                            Kentucky
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                            February 14, 2006
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                            Posted: May 17, 2010, 1:51 pm - IP Logged

                            They shouldn't have outlawed internet gambling in the FIRST place, then they wouldn't have to be GOING through this ignorant mess!!!!!

                            If "they" means Congress, they never actually outlawed Internet gambling. What they did was stop money transfers from U.S. banks to Internet gambling sites. The biggest effect was to Online casinos and bingo games and most of them were forced to shut down. Basically if the sites issued players a check, no U.S. bank could cash it. The Online poker sites where less effected because of the large volume of foreign players and most of those sites have found other means for U.S. players to maintain real money accounts.

                            Some states enacted bans on any Internet gambling even though they still haven't a clue as how to enforce it. There is Constitutional question on if states can ban residence from visiting any website originating from another state or from another country too.

                            The IRS can require state lotteries to withhold taxes on winnings over $5000 and issue W2-Gs on winnings over $600. There is a problem of how to tax the online winnings because the IRS has no jurisdiction outside the U.S. where the Internet gambling sites are located. That is pretty much the reason why Internet Gaming Bill is still stalled in committee.