New Legislation Introduced On Internet Gambling

This could mean a big difference in the passing of license and regulation internet gambling. This is from the Safe and Secure Internet Gambling Initiative!

Rep. Jim McDermott (D-WA)introduced today an updated version of the Internet Gambling Regulation and Tax Enforcement Act of 2010, a bill that would ensure that applicable taxes and fees are collected from a regulated Internet gambling industry in order to raise much-needed revenue for federal and state budgets.  The most significant change from the previous version, introduced in 2009, is the addition of a provision that allows each State and Tribal Government to be paid six percent of all deposits placed by residents of their jurisdiction with licensed online gambling operators – a change that is expected to generate up to $30 billion over 10 years.  Furthermore, the legislation would assign 25 percent of the federal revenue collected on gambling operators – estimated at $42 billion over 10 years – to provide assistance to children in foster care.

According to The Hill, McDermott bill would use revenue from new online gaming tax for foster kids Rep. McDermott favored the new provisions because “state government budgets have been hit hard by the recession and social services, like children’s health insurance, are suffering.” 

Rep. McDermott’s legislation is meant to serve as a companion to the Internet Gambling Regulation, Consumer Protection and Enforcement Act of 2009 (H.R. 2267), legislation introduced by House Financial Services Committee Chairman Barney Frank (D-MA) that would permit licensed operators to accept online wagers from individuals in the U.S. 

AGA Now Open to Internet Gambling Regulation

The American Gaming Association (AGA) has changed their previously neutral position on Internet gambling regulation, saying that they are now “open to the concept of legalized Internet gambling, so long as there is a regulatory regime that is put in place that protects the consumer and protects the integrity of the game,” according to an interview with Frank Fahrenkopf, CEO of the AGA.

AGA’s New position statement reads “After considerable study…our concerns about technology have been eliminated by advancements in the field, and the AGA believes that the technology now exists to properly regulate Internet gambling with appropriate law enforcement oversight and to provide appropriate consumer protections for individuals gambling online. However, the AGA also believes that existing laws do not adequately protect the millions of Americans who gamble online every day.”  

While the AGA has not yet taken a stance on any current Internet gambling legislation, Fahrenkopf said the group might feel compelled to back legislation as momentum for regulation grows.