Jim McDermott Introduces Internet Gambling Regulation and Tax Enforcement Act of 2013
According to The Safe and Secure Internet Gambling Initiative, a leading advocate for Internet gambling regulation, Rep. Jim McDermott (D-WA) introduced the Internet Gambling Regulation and Tax Enforcement Act of 2013 on Thursday.
The federal bill, which ensures taxes and fees are collected within a regulated regime, serves as companion legislation to the Internet Gambling Regulation, Consumer Protection and Enforcement Act of 2013, which was introduced earlier this year by Rep. Pete King (R-NY) to allow Internet gaming in a regulated federal environment.
“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. With the pending Internet gambling bills, Congress can put in place broad consumer protections and capture significant new government revenues without having to raise taxes,” said Michael Waxman, spokesperson for the Safe and Secure Internet Gambling Initiative. “It’s shocking that Congress has decided to leave in place hypocritical laws that allow some forms of online gambling activity, such as betting on horse racing, but prohibits others, like poker and bingo. You’d be hard pressed to find another industry pleading for a chance to offer online the same activities permissible offline, and be taxed fairly to do so.”
Here are some highlights from the Internet Gambling Regulation and Tax Enforcement Act of 2013:
- Creates a twelve percent deposit tax paid by licensed operators, not players.
- The federal government would collect four percent of the tax, while qualified states and tribes that participate in the federal regime would receive eight percent.
- The online gambling tax payable to states and tribes is dependent upon the location of the customer in the respective qualified state or tribal area at the time the customer makes a deposit.
For more information, check out the Safe and Secure Internet Gambling Initiative.
*Lead photo courtesy of weaselzippers.us.