New Bill Would Tax 2 Percent of Gambling Deposits

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New Bill Would Tax 2 Percent of Gambling Deposits
cardplayer News
Friday June 8th, 2007
Online Gambling Legislation - New Bill Would Tax 2 Percent of Poker Deposits
Sites, Not Players, Would Be Responsible for Paying Tax
A companion bill to Barney Frank?s Internet Gambling and Regulation Enforcement Act was introduced in the House of Representatives last night by Washington State Congressman Jim McDermott.

McDermott?s Safe and Secure Internet Gambling Initiative would tax 2 percent of a person?s online poker or gambling deposits. The licensed sites would be responsible to pay the government the 2 percent of all deposits made for real-money play.

The Financial Crimes Enforcement Network would be responsible for licensing the sites. According to the Safe and Secure Gambling Initiative, a lobby organization that?s fighting for online gambling?s legality, between $6 billion and $25 billion would be raised from McDermott?s bill through taxation in the first five years.

Nevada Congresswoman Shelley Berkley is the bill?s co-sponsor. Berkley is also sponsoring a bill that calls for an intensive study on Internet gambling to determine if current technology could be used to taxed, regulate, and provide protection for minors.

Frank's bill would legalize online gambling, including poker, in the United States. It would provide a regulatory framework to tax and regulate online gambling.

Earlier this week, Florida Rep. Robert Wexler introduced a bill that would exempt poker and other games of skill from all current anti-online gambling laws, including the Unlawful Internet Gambling Enforcement Act that was passed last year.