|Federal tax revenues in the United States could benefit by up to $42.8 billion over ten years if the Government took a regulation and licensing approach to online gambling over its current tactic of prohibition.|
This was the finding of a new study by the independent business services group PricewaterhouseCoopers, which was provided to all members of Congress by Representative Jim McDermott earlier this week in support of his proposal to license, tax and regulate US online gambling along the lines suggested by Congressman Barney Frank.
'Before us is a tremendous opportunity to protect consumers and recoup billions of dollars that should be collected by the Internal Revenue Service,” said Representative McDermott.
“These are revenues that are desperately needed, given that we are at war and face difficulty financing the nation's priorities.'
The Washington Democrat introduced the Internet Gambling Regulation and Tax Enforcement Act last year that seeks to tax regulated Internet gambling and is urging fellow representatives to support the regulation over prohibition.
'To be clear, these are not mostly new taxes as the bulk of the revenues generated would come from taxes required under existing law,' said Representative McDermott.
'This is simply a framework to collect taxes on existing activity that is currently unregulated, unsupervised and underground.'
He stated that the current approach by the US Government to prohibit online gambling through the Unlawful Internet Gambling Enforcement Act (UIGEA) has proved to be a failure as millions of Americans are still able to gamble online.
'Instead of this ineffective attempt to prevent adults from gambling over the Internet, we need a more sensible approach to protect consumers and ensure that revenues that now flow offshore stay here in the US and are, therefore, subject to taxation,' said Representative McDermott.
'A new, safer and more sensible approach is needed to regulate Internet gambling and protect consumers.'