US Committee to review legalized internet gambling

Ways and Means Chairman Sander M. Levin said on Wednesday that the full Committee will meet next week to discuss the current tax laws and reporting requirements applicable to betting in the United States and to consider tax proposals related to legislation pending in the Congress to license and regulate internet gambling activities.

With the enforcement date of regulations implementing the UIGEA less than three weeks away, the Committee will hear oral arguments from invited witnesses only due to the limited time available, but will accept written submissions up to Wednesday June 2nd.

The Committee will focus on Congressman Jim McDermott’s Internet Gambling Regulation and Tax Enforcement Act, a companion bill to Representative Barney Frank’s Internet Gambling Regulation, Consumer Protection and Enforcement Act.

The McDermott bill has recently been revised in order to address the concerns of various gambling interests in the United States, including Native American tribes, many of which see internet gambling as a threat to their existing land-based casino operations.

Included in the revised bill are four new provisions including a revenue incentive for states and tribes to participate through a 6% tax on gambling deposits which could generate an estimated us$ 30 billion for states and tribes on top of the us$ 41 billion in revenues for the federal government.