Online Gambling Could Yield $42.8 Billion For New Gov't Spending
Regulated and taxed Internet gambling could generate as much as $42.8 billion for federal coffers over the next decade, according to an analysis announced by Rep. Jim McDermott (D-Wash.)
The analysis estimates that regulated Internet gambling would generate between $3.1 billion to $15.2 billion in federal revenues over its first five years, and between $8.7 billion to $42.8 billion over its first 10 years.
The data, based on a detailed analysis provided by an independent accounting firm, was provided in testimony submitted to the House Committee on the Judiciary where McDermott also detailed policy refinements to his legislation, the Internet Gambling Regulation and Tax Enforcement Act.
"Even under the most conservative estimates, licensing and regulating Internet gambling - and collecting the taxes that are due - will provide much-needed revenue to the U.S. Treasury," says McDermott. "This is money we are currently losing to other jurisdictions, for no other reason than some of my colleagues' think we can actually stop people from gambling online. It is money we will continue to lose if we ignore the fact that if grown adults in America want to gamble online, they can and they will."
The Internet Gambling Regulation and Tax Enforcement Act has been refined to provide better protections against tax cheating and thereby increase federal revenue from permissible Internet gambling activity, according to a statement by a pro-gambling advocacy organization, the Safe and Secure Internet Gambling Initiative. The only new fee proposed is a payment equal to two percent of player deposits placed with a licensed gambling operator - fees paid by the operator, not the individual gambler, the statement says. The 2 percent deposit fee is designed to equalize the costs of operation in providing gambling services online as opposed to brick and mortar casinos providing gambling services in-person, and would only be applied to online operators, it adds.
"To be clear, most of the revenues generated would come from taxes required under existing law that we currently lose because of a misguided belief that we can actually stop Internet gambling," says McDermott. "Specifically, these are not new taxes, but rather taxes on existing activity that is currently unregulated, unsupervised, and underground."
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The analysis estimates that regulated Internet gambling would generate between $3.1 billion to $15.2 billion in federal revenues over its first five years, and between $8.7 billion to $42.8 billion over its first 10 years.
The data, based on a detailed analysis provided by an independent accounting firm, was provided in testimony submitted to the House Committee on the Judiciary where McDermott also detailed policy refinements to his legislation, the Internet Gambling Regulation and Tax Enforcement Act.
"Even under the most conservative estimates, licensing and regulating Internet gambling - and collecting the taxes that are due - will provide much-needed revenue to the U.S. Treasury," says McDermott. "This is money we are currently losing to other jurisdictions, for no other reason than some of my colleagues' think we can actually stop people from gambling online. It is money we will continue to lose if we ignore the fact that if grown adults in America want to gamble online, they can and they will."
The Internet Gambling Regulation and Tax Enforcement Act has been refined to provide better protections against tax cheating and thereby increase federal revenue from permissible Internet gambling activity, according to a statement by a pro-gambling advocacy organization, the Safe and Secure Internet Gambling Initiative. The only new fee proposed is a payment equal to two percent of player deposits placed with a licensed gambling operator - fees paid by the operator, not the individual gambler, the statement says. The 2 percent deposit fee is designed to equalize the costs of operation in providing gambling services online as opposed to brick and mortar casinos providing gambling services in-person, and would only be applied to online operators, it adds.
"To be clear, most of the revenues generated would come from taxes required under existing law that we currently lose because of a misguided belief that we can actually stop Internet gambling," says McDermott. "Specifically, these are not new taxes, but rather taxes on existing activity that is currently unregulated, unsupervised, and underground."
Watch more breaking news now on our video feed:
Bookmark http://onthehillblog.blogspot.com/ and drop back in for more news from the nation's capital.
Labels: federal spending, Internet gambling, Jim McDermott, online gambling, tax revenue
posted by Scott Nance at
3:11 PM
1 Comments:
While browsing some new ways to spend my time on the internet I stumbled across an online bingo game and I absolutely loved it! Don’t need to play for money (but much more fun if u do!) it’s a great way to kill some time and chat to people while playing! Iv won a couple of quid and iv only been playing for a month or so. Theres loads of websites available and once you give it a go you wont regret it! I recommend everyone should play online bingo as its low cost and the winnings can be huge.
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