Internet gambling bills being considered in the US
20 May
It was argued before a congressional panel this week that Internet gambling should be legalized and taxed in the United States to raise $42 billion in the period of ten years and declare lawful gamers who bet online.
“We are talking about a decision by adults to do what they want to do with their own money,” said Democrat Representative Barney Frank, who sponsors a bill to legalize online gaming, citing John Stuart Mill’s essay “On Liberty” to bring across his perspective. The House of Representatives is considering two Internet gambling bills. One would legalize it. The other would require people to declare winnings from online gambling to U.S. tax authorities and set a 0.25 percent tax on wagers of all federally licensed bets.
The UIGEA (Unlawful Internet Gambling Act) has been signed into law on the 13th of October, 2006. The UIGEA objective was to stop the transfer of funds from any USA financial institution to online gambling websites, excluding USA based websites for lotteries and horse racing.
If all states took part, taxing online gambling could raise about $42 billion over a decade, according to the joint congressi
onal tax committee. Washington Democrat Jim McDermott sponsors the tax bill, but not all Democrats back it. Some Republicans favour it, but others are against it due to moral concerns.
Privately held Harrah’s Entertainment, the biggest casino company, backs legalizing online gambling, but not the House bill on taxation. Rival MGM Mirage said it has no position on the tax bill, but supports legalization and taxation in some form.
The Obama Administration has yet to take a position on the matter.
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