|Newly appointed Governor of California (the world’s 6th largest economy) Arnold Schwarzenegger is already tackling the state’s tumbling economy by hitting the state’s gambling enterprises with new tax increases. |
Governor Arnold’s plan is to repeal the California car tax, ease small business taxes, cut state spending and up the ante on gambling taxes. Not an uncommon position, taxing entertainment businesses during times of economic slowdown, Governor Arnold’s new gambling taxes will undoubtedly bring much needed funds into state coffers. But if the Governor really wanted to tax the hell out of the casinos he would also allow much debated intra-state virtual gambling within California, and levy taxes on virtual gaming enterprises at a commensurate rate to land-based operations.
Several firms have already offered to move into the US and pay tax to the US government in exchange for clear-cut legal policy regarding online gaming. Sportingbet PLC, a UK quoted company took out a series of advertisements in the Washington Post asking for legislation that would allow them to be licensed and taxed in the US. Perhaps Sportingbet PLC should have a look at taking a page out in the LA Times.