Internet Gambling Regulation and Tax Enforcement Act of 2013 Introduced
Posted by: James Carter - Sun, 2013-11-17 14:20
Even as state-by-state regulation is slowly but surely becoming reality for online poker, some of the advocates of federally legalized online poker and gambling are still pushing their envelope. The Safe and Secure Internet Gambling Initiative has revealed the other day that Rep. Jim McDermott – who, with Barney Frank’s retirement became the top supporter of the cause of legal online gambling and poker in Congress – has just introduced a new bill aimed at taking significant steps towards legalization and regulation.
The name of the said bill is the Internet Gambling Regulation and Tax Enforcement Act of 2013, and it is aimed at setting and enforcing a regulated regime under which federal taxes can be collected from online gambling and online poker operators
The bill is not a standalone attempt at legalization. It is in fact but a companion bill to Rep. Pete King’s Internet Gambling Regulation, Consumer Protection and Enforcement Act of 2013. According to the spokesman of the Safe and Secure Internet Gambling Initiative, the timing of the bill is just right, with all the discussions currently ongoing on Capitol Hill regarding various funding issues.
The proposed bill would see a 20% tax rate levied on licensed operators. Players wouldn’t be directly targeted by this tax, but operators would probably find ways to pass on the extra costs to them.
Of that money, 4% would go to the Federal Government, while 8% would be picked up by individual states and various tribal interests involved in the business. The bill makes the determining of the actual amount of tax payable to tribes and states somewhat convoluted, since it makes it dependent on the exact location of the player at the time his deposit is made.
Whether anything at all will become of this bill is early to say, states however seem bent on forging ahead with their local-level legalization and regulation.
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