Internet Gambling Bill Passes House Committee

WASHINGTON July 29, 2010- In a bipartisan vote of 41-22; the House Financial Services Committee approved a bill which would allow for internet gambling, entitled the INTERNET GAMBLING REGULATION CONSUMER PROTECTION & ENFORCEMENT ACT OF 2009 (H.R. 2267).

“The Internet Gambling Regulation Consumer Protection & Enforcement Act would establish a federal regulatory and enforcement framework under which Internet gambling operators could obtain licenses authorizing them to accept bets and wagers from individuals in the U.S., on the condition that they maintain effective protections against underage gambling, compulsive gambling, money laundering and fraud, and enforce prohibitions or restrictions on types of gambling prohibited by states, and Indian Tribes.”

In 2006 the Congress approved the Unlawful Internet Gambling Enforcement Act which made it illegal for any financial institution to transfer funds from or to an internet gambling website.

A similar bill is making its way through the House Ways and Means Committee. The Internet Gambling Regulation and Tax Enforcement Act is a companion bill to HR 2267. The bill would create a 6% tax on gambling deports and is projected to generate $30 billion in funds for states and $41 billion for the federal government.

“Legalizing, regulating and taxing internet gambling just makes sense” Rep. Jim McDermott said. “Right now, the U.S. loses billions of dollars to off-shore gambling and illegal gambling rings because of an unrealistic and virtually unenforceable policy. The current prohibition of online gambling has failed and made countless Americans vulnerable to fraud, identity theft and money laundering. This revised legislation will help States—which are facing budget crises all their own—collect much-needed revenue, and will help provide the foster care system with more resources as well. This legislation will help protect consumers and help both the federal and state governments recoup billions of dollars that now flow offshore.”