The Safe and Secure Internet Gambling Initiative announced its support for the Internet Gambling Regulation and Tax Enforcement Act, introduced today by Congressman Jim McDermott (D-WA). The bill would create a taxation regime for online gambling companies to be licensed under the recently introduced Internet Gambling Regulation and Enforcement Act (H.R. 2046).
As Congress works to find funding for critical government programs, Congressman McDermott's legislation is expected to generate between $6 billion and $25 billion in revenues for the U.S. Treasury in the first fiveyears of enactment.
"The government should not be telling Americans what we can and can'tdo on the Internet," said Jeffrey Sandman, spokesman for the Initiative."By prohibiting a popular, recreational activity that many millions enjoyin the comfort of their own homes, the U.S. is also losing out on the opportunity to collect billions in revenue."
Regulated Internet gambling would protect an individual's freedom touse the Internet as they choose, generate funding for critical government programs and protect against underage gambling, compulsive gambling, money laundering, identity theft and fraud. Current efforts to prohibit Internet gambling are futile. Americans continue to gamble online, but without safeguards and protections.
Congressman McDermott's legislation functions as a companion bill tothe Internet Gambling Regulation and Enforcement Act, which would establisha licensing and enforcement framework for regulated Internet gambling in the U.S.
Under the licensing legislation, each Internet gambling operator licensed by the Financial Crimes Enforcement Network (FinCEN) would be required to pay a fee of two percent of all funds deposited by any person placing a bet. The license fee would be paid solely by the Internet gambling operator and would not be deducted from the deposit of the person placing a bet. Licensed operators would also be required to ensure thecollection of applicable federal and state taxes from licensees and from individual gamblers.
Congresswoman Shelley Berkley (D-NV), who is also a co-sponsor of theInternet Gambling Regulation and Enforcement Act, recently introduced another Internet gambling bill. This increasing activity in Congressfurther indicates the growing interest and support for reform that allows American's the freedom to gamble online.
The Safe and Secure Internet Gambling Initiative is mobilizing supporters across the country to support regulated Internet gambling. Founders of the Initiative are the UC Group and Baker Tilly. Additional endorsers are highlighted on the Safe and Secure Internet Gambling Initiative Web site. The UC Group provides integrated payment processing services and logistical support to online product and service providers. Baker Tilly is an independent member of Baker Tilly International, the 8th largest accountancy network in the world by fees.
