Tech Daily Dose: Gambling Regs Could Fill Gov't Coffers

Gambling Regs Could Fill Gov't Coffers

Thu, 29 Oct 2009 17:14:47 GMT

Rep. Jim McDermott, D-Wash., on Thursday released an analysis by the Joint Committee on Taxation on the opportunity to generate up to $41 billion in new government revenue over the next decade through the regulation and taxation of Internet gambling. McDermott and Financial Services Chairman Barney Frank introduced companion bills earlier this year to regulate Web gaming rather than banning it entirely. The activity is currently prohibited in the United States under a 2006 law.

"I suspect that many of my colleagues, especially those on the fence, will take more interest in this issue once they see $41 billion available that they can match up with any number of worthy programs," McDermott said in a press release. "I would suspect it's only a matter of time before Congress appropriately moves to regulate the industry in order to protect consumers and reverse the flow of billions of dollars currently lost offshore as Americans gamble billions online despite attempts to prohibit the activity."

"Given the many critical government programs currently going under-funded or not funded at all, Internet gambling regulation should be given fair and immediate consideration, " McDermott said. "Prohibition in various guises has failed before and is failing once again. There is a better way." Read the Joint Committee on Taxation document here (PDF).

Fifth Street Journal responded on October 30, 09 05:47 PM

Fri, 30 Oct 2009 21:47:27 GMT

JC: It doesn't actually make "wire transfers," or any other payments, to online gambling sites illegal either. Unless the gambling is illegal under state law.

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JC responded on October 29, 09 05:55 PM

Thu, 29 Oct 2009 21:55:52 GMT

Just one clarification. The Unlawful Internet Gambling Enforcement Act of 2006 (or UIGEA) did NOT make online gambling illegal at the federal level. What it did, at a basic level, is prohibit wire transfers to Internet gambling sites or the banks which represent such sites which, in essence, made it very difficult for people to fund their online gambling activities.

Per the FAQ on the Poker Player's Alliance website (http://theppa.org/about/faq/#faq7): "There is currently no federal law that prohibits anyone from playing poker online. The Unlawful Internet Gambling Enforcement Act of 2006, does not change any federal gambling and does not make it illegal for people to play on the Internet (Note: some states do have laws, like Washington St. which have criminal penalties for online)."