New Bill Proposes To Tax Online Gambling - 02-04-08

February 4 - A new bill that proposes to tax online gambling has been proposed by Rep. McDermott, a Democrat from Washington. McDermott is quoted as saying: "It seems amazing that the government can accept the loss of American jobs to outsourcing as a price that must be paid for free trade, but online gambling is more than it can stomach."

Whilst the proposed Bill will no doubt encounter some obstacles, it will contribute to the pressure put on what is currently a very expensive and most likely unachievable online gambling ban. If common sense prevails, the online gambling ban will be replaced with laws allowing for taxation and regulation of gambling over the internet.

McDermott' proposed bill will not only result in online gambling sites being taxed, but goes one step further and proposes regulations regarding the conduct of online casinos and gambling operators. The bill acknowledges the reality that online gaming will continue to exist and cannot be stopped through legislation as is currently the case.

McDermott backs up his logic using financial analysis from accounting firm PriceWaterhouse. A study by the company estimated possible tax income in excess of $8.2 billion which could grow to as much as $42.8 billion over the next ten years. He argues that such a source of income cannot be ignored in the face of current economic hardships in the United States.

The Unlawful Internet Gambling Enforcement Act which is currently in force is designed to prevent the flow of money from financial institutions to online gambling sites. The reality is that millions of US citizens still gamble online, and organizations such as the American Bankers Association and the Credit Union National Association have responded to the bill with a lot of criticism and obvious reluctance to enforce it.

As a further result, countries like Antigua and Costa Rica have pursued a legal remedy for violations of free trade agreements with the U.S.

McDermott's bill will support that of  Representative Barney Frank's bill, whose Internet Gambling Regulation and Enforcement Act has gathered a lot of momentum lately.

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