Top US Online Casinos
1. Jumba Bet Casino - $25 No-Deposit Bonus Plus a $1,200 Welcome Welcome package.
2. Bovada - Best bitcoin casino and massive welcome bonus worth 100% up to $3,000 Free.
3. Lucky Creek - 66 Free Spins Plus 166% up to $266 Free.

Change in Federal Internet Gambling Taxation Bill

22 June 2011 by admin

As mentioned recently here at onlinecasinosuite.com, the companion bill to the legalization of online casino gambling bill that Representatives Barney Frank and John Campbell introduced has been introduced. This is unsurprising considering that Representative Jim McDermott introduced a taxation companion bill in 2009 to go along with Frank’s 2009 online gambling legalization bill.

So here we are two years later and Frank is championing a new legalization bill, and now McDermott has brought out his companion bill for taxing legalized online gambling. But this taxation bill is not entirely the same as it was last year.

Yes, it still taxes the gross earnings of online casino operators, but a couple of new things have been added this time around.

It is a commonly brought up concern about preventing underage gambling and increasing problem gambling when talks of legalizing online gambling are brought up. On a taxation basis McDermott has addressed this. His new online gambling taxation bill would require online casino operators to report certain details about player’s gambling activity, such as gross wagers, gross losses and gross winnings. This is an effort to spot problem gambling and underage gambling. But it is also an effort to prevent tax fraud by players not reporting online casino winnings, which sadly happens—it is one of those ‘a few bad apples have ruined it for all of the good ones’ kind of thing. But tracking how players are wagering can help spot a player who is slipping into compulsive or problem gambling before they get in over their heads.

Also required in this new version of McDermott’s taxation bill is a rule that would have online casino operators paying taxes on the gross deposits they receive from players at a rate of 2%. This rule has it strictly stated that the 2% is not to come directly from the players’ deposits but from their profits derived from players’ gambling. It is that they must pay whatever 2% of the gross deposits equal.

Hopefully this companion taxation bill will help boost support for Frank and Campbell’s bill to legalize online gambling in the US since the companion bill has features that help address problem and underage gambling concerns.

Comments are closed.