US Could Reap Billions In Revenues From Online Gambling

5th February

It has been estimated that the US could generate between $8.7 billion and $42.8 billion in revenue over ten years just by regulating online gambling.

These are the findings of an analysis provided by PricewaterhouseCoopers and which was presented to members of congress last week by US house representative Jim McDermott.

Mr McDermott was bringing to the attention of the US congress the “…opportunity to protect consumers and recoup billions of dollars that should be collected by the Internal Revenue Service.”

McDermott’s proposed bill is in addition to the Internet Gambling Regulation and Enforcement Act (H.R. 2046), legislation introduced by Representative Barney Frank.

Mr Frank’s bill proposes to set up licensing and regulations for internet gambling in the US. It would permit individual states to take control over internet gambling within their specific borders and allow them to regulate taxes and restraints, as deemed appropriate.

The prohibition that the US has in place at the moment, the Unlawful Internet Gambling Enforcement Act (UIGEA,) has proven to be ineffective as millions of Americans can still gamble online.

Rather than trying to prohibit adults from gambling over the internet, the Frank and Mr McDermott bill would ensure, through regulation, that revenues that are now flowing offshore would stay in the US and would be subject to taxation.