Is regulating online gambling in the U.S. worth the tax revenue?
There is no denying the fact that legalizing online gambling would generate hefty amounts of tax revenue. However, just how much revenue is the question. And the better question is just how much at the cost of what? Being that the House Committee on Ways and Means has jurisdiction over taxation matters, the former question will be more closely examined than the latter at the Hearing on Tax Proposals Related to Legislation to Legalize Internet Gambling on Wednesday at 9:30 am.
Specifically, the Committee says it will be discussing revenue and tax figures resulting in the legalization of online gambling in the United States. Tax legislation has already been drawn up, as has a co-bill that would essentially overturn the UIGEA and give individual State governments the right to regulate on their accord. Overreaching regulatory legislation will trickle down from a Federal level, as will tax revenue between the Federal and State governments. Taking all of this into account, including the counter effects of the UIGEA and electronic eCommerce research undertaken by the Department of Treasury, will be the task at hand for the Committee.
The UK government, which passed legislation to regulate most forms of online gambling back in 2005-2006, could serve as a model and gauge for predicting potential tax revenue, although it isn’t known if the Committee plans to take an extensive look at the UK Gambling Act, let alone discuss it during deliberations.
What is most promising is that several Committee members have expressed sincere interest and even adamant hope in overturning the UIGEA and passing strict legislation that would effectively regulate online poker and online casinos, including Nevada Representative, Shelley Berkley.
Anyone interested in supporting the cause further can do so by visiting www.waysandmeans.house.gov and participate in the discussions by means of submitting a written record. In order to do so, send an email to wmsubmissions@mail.house.gov and include your name, organization, address, phone number, contact email address, and title of the hearing (Hearing on Tax Proposals Related to Legislation to Legalize Internet Gambling) in the body of the email. Attach your submission as a Word document. If all required information is provided, the statement may be included in the Table of Contents and printed in the hearing record.
