New Legislation Calls for Federal Tax System for Internet GamblingPublished November 21, 2013 by OCR Editor
The proposel of the Internet Gambling Regulation and Tax Enforcement Act of 2013 is the latest step towards federal legislation of internet gambling.
Rep. Jim McDermott (D-WA) recently introduced companion legislation to the introductory legislation that was proposed by Reps. Pete King (R-NY) and Michael Capuano (D-MA) earlier this year. The proposed legislation would allow internet gambling under a federal umbrella, and protect consumers in a regulated environment. The companion legislation adds that any federal regulations would ensure that taxes are collected within a regulated system.
The Safe and Secure Internet Gambling Initiative applauded Rep. McDermott's Internet Gambling Regulation and Tax Enforcement Act of 2013, which offers an innovative and, in their opinion, necessary, new model for collecting revenue for the federal government.
Michael Waxman, the spokesperson for Safe and Secure, said, "With all of the fighting in DC over funding issues, you'd hope this opportunity to generate billions in economic activity and new government revenues will get serious consideration, not to mention the many new jobs that would be created."
McDermott's new act would create a twelve percent deposit tax that licensed operators would need to pay; the players, for now, would remain untaxed. 4& of the tax would go to the federal government, and the remaining 8% would go to states that qualify under the federal regime. A similar system of state qualification is used in the United Kingdom.
According to Morgan Stanley, internet gambling will bring in at least $9.3 billion in profit by the year 2020, which is the same amount that Las Vegas and Atlantic City bring in today.