Internet Gambling Regulation and Tax Enforcement Act Introduced Today

[drunkguy]

Safe and Secure Internet Gambling Initiative Supports Legislation to Remove Unnecessary Government Prohibition on Internet Gambling



Bill would generate billions of dollars for important government programs and protect freedom of individuals to gamble online



June 7, 2007 – The Safe and Secure Internet Gambling Initiative announced its support for the Internet Gambling Regulation and Tax Enforcement Act, introduced today by Congressman Jim McDermott (D-WA). The bill would create a taxation regime for online gambling companies to be licensed under the recently introduced Internet Gambling Regulation and Enforcement Act (H.R. 2046).



As Congress works to find funding for critical government programs, Congressman McDermott’s legislation is expected to generate between $6 billion and $25 billion in revenues for the U.S. Treasury in the first five years of enactment.


“The government should not be telling Americans what we can and can’t do on the Internet,” said Jeffrey Sandman , spokesman for the Initiative. ”By prohibiting a popular, recreational activity that many millions enjoy in the comfort of their own homes, the U.S. is also losing out on the opportunity to collect billions in revenue.”



Regulated Internet gambling would protect an individual’s freedom to use the Internet as they choose, generate funding for critical government programs and protect against underage gambling, compulsive gambling, money laundering, identity theft and fraud. Current efforts to prohibit Internet gambling are futile. Americans continue to gamble online, but without safeguards and protections.



Congressman McDermott’s legislation functions as a companion bill to the Internet Gambling Regulation and Enforcement Act, which would establish a licensing and enforcement framework for regulated Internet gambling in the U.S.



Under the licensing legislation, each Internet gambling operator licensed by the Financial Crimes Enforcement Network (FinCEN) would be required to pay a fee of two percent of all funds deposited by any person placing a bet. The license fee would be paid solely by the Internet gambling operator and would not be deducted from the deposit of the person placing a bet. Licensed operators would also be required to ensure the collection of applicable federal and state taxes from licensees and from individual gamblers.



Congresswoman Shelley Berkley (D-NV), who is also a co-sponsor of the Internet Gambling Regulation and Enforcement Act, recently introduced a bill to study Internet gambling. This increased level of activity in Congress further indicates the growing interest and support for a common sense system to allow Americans the freedom to gamble online with effective safeguards.



The Safe and Secure Internet Gambling Initiative is mobilizing supporters across the country to support regulated Internet gambling. Endorsers of the Initiative include the UC Group and Baker Tilly. Additional endorsers are highlighted on the Safe and Secure Internet Gambling Initiative Web site. The UC Group provides integrated payment processing services and logistical support to online product and service providers. Baker Tilly is an independent member of Baker Tilly International, the 8th largest accountancy network in the world by fees.



For more information on the Initiative, please visit Safe and Secure Internet Gambling Initiative. The website provides a means by which individuals can register support for regulated Internet gambling with their elected representatives

[drunkguy]

“The government should not be telling Americans what we can and can’t do on the Internet,”

no of course not, the government should just be stealing as much money out of people's pockets as possible

[Highwayman]

Onshore gambling entities (i.e. AGA) would be against this FEDERAL TAXATION plan...and I would assume there would be resistance to this proposal from American gamblers as well who would be required to provide sensitive personal financial information, which could not possibly be safe-guarded against potential abuses, theft and of course scrutiny from Government agencies interested in such information.

We can only hope this as well as all federal proposals which infringe upon financial privacies while imposing additional regulations and taxes fail.






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[Uncle B]

didn't even notice this...thanks for the links.

[buddyboy]

Congatulations sir you do have a winning bet ticket, let me just review it with you quickly while we process your withdrawl.

$110 to win $100

winner!

Credit $210

5% transaction fee $10.5
3.5% Federal Gaming Tax $7.35
I see you live in New York State... ouch 10% NY State Gaming tax $21
ohhh and NYC too! that's another 10% $21
federal income tax 28%, good news sir that amount is only based on your win! $28

ACH transfer fee $30

ok sir your balance after your win was $210
after taxes and fees we are sending you an ACH for $92.15

remember your bank may charge a slight fee for you to receive a gambling related transaction, we have no control over that.

We know you have a choice when playing online, thanks for choosing Harrah's Bet on Sports.

[skilled27]

Originally Posted by buddyboy

Congatulations sir you do have a winning bet ticket, let me just review it with you quickly while we process your withdrawl.

$110 to win $100

winner!

Credit $210

5% transaction fee $10.5
3.5% Federal Gaming Tax $7.35
I see you live in New York State... ouch 10% NY State Gaming tax $21
ohhh and NYC too! that's another 10% $21
federal income tax 28%, good news sir that amount is only based on your win! $28

ACH transfer fee $30

ok sir your balance after your win was $210
after taxes and fees we are sending you an ACH for $92.15

remember your bank may charge a slight fee for you to receive a gambling related transaction, we have no control over that.

We know you have a choice when playing online, thanks for choosing Harrah's Bet on Sports.

After second thought Harrah's, since I DO have an option of where I play, I think I will stick with Matchbook where I pay none of these fees and get 5c lines. Please process this one transaction and I will be taking my business offshore. Thank you.

[skilled27]

By the way, when you fill out your taxes every year, the government itself sells ALL of your personal and financial information to whoever wants it. Unless you check the small, hard-to-see little box requesting them not too.

Whoever wants your SS#, financial information, or whatever information they want about you, can get it easily already.

[Tommyjay]

I remember when they tried this 2% deal at the Nevada book shops. Had to be 25 years ago. Didn't work then, and it won't work now. I guess bookmaking is just destined to stay underground.

[Hartley]

Totally off topic question. Why is gambling and lottery winniings taxable in the U.S. I can't think of any other nation where they ding you twice (there is a large tax built into the tickets themselves and casinos pay taxes on winnings which of course come from you).

[StarnetGypsy]

Originally Posted by buddyboy

I see you live in New York State... ouch 10% NY State Gaming tax $21
ohhh and NYC too! that's another 10% $21
federal income tax 28%, good news sir that amount is only based on your win! $28

ACH transfer fee $30.

good one Buddy!

“The government should not be telling Americans what we can and can’t do on the Internet,”

... but they are, and they've destroyed 2/of the most lucretive online industries, online drugs from Canada and online gaming (porn has somehow managed to survive?).

[buddyboy]

in the US you get dinged 3X

once when you buy the ticket (100% tax)
again if you win (income tax)
again when you spend it (sales tax) or when you die (estate tax)

[Mike Brennan]

Originally Posted by buddyboy

in the US you get dinged 3X

once when you buy the ticket (100% tax)
again if you win (income tax)
again when you spend it (sales tax) or when you die (estate tax)

Don't forget that sometimes income tax is a triple-play - Federal, State and even City Income Tax.