Congress Active in Regulation EffortsPublished June 12, 2007 by OCR Editor
Lawful Internet gambling for US players might actually become a reality in the near future, as growing support for regulation and enforcement Acts is announced
The regulation of Internet gambling would allow for lawful online gaming for all US citizens, and protect the individuals' freedom to use the Internet as they choose. It would also generate much needed funding for essential government programs from licensing revenues, an expected $6-25 billion in the first five years of enactment. In addition, the Act will protect against underage and problem gambling, identity theft, money laundering and fraud.
According to the licensing legislation, all casino operators will be required to obtain a license from the Financial Crimes Enforcement Network (FinCEN). In addition, all license holders will have to pay 2% a charge of 25 of all funds deposited by a person wagering online. This will be paid only by the license holder, and not the person placing a bet, so the taxation will not affect players directly. However, they will also be required to collect applicable federal and state taxes from licensees and individual online gamblers.
Evidently, McDermott's legislation serves as a companion bill to Congressman Franks Internet Gambling Regulation and Enforcement Act. The two bills combined would establish an enforcement and licensing framework for regulating the industry in the US, and therefore, cancel the Unlawful Internet Gambling Enforcement Act signed by President Bush last year.
Spokesman for the initiative, Jeffrey Sandman, explained that the government should not be telling Americans what we can and cannot do on the Internet. By prohibiting a popular, recreational activity that many millions enjoy in the comfort of their own homes, the US is also losing out on the opportunity to collect billions in revenue. Other bills are being introduced as well, including that of Congressman Shelley Berkley (D-NV), who is a co-sponsor of the IGREA. This proves the growing support for the Americans freedom to gamble, and for the need to reform.
The Safe and Secure Initiative is now mobilizing massive support nation wide for the regulation of Internet gambling. With the activity regulated under the law, all online players and operators are encouraged to get on board.