McDermott launches tax bill companion to HR 2267

McDermott launches tax bill companion to HR 2267

Washington Democrat Representative Jim McDermott has introduced an updated version of the Internet Gambling Regulation and Tax Enforcement Act of 2010, a bill that would ensure that applicable taxes and fees are collected from a regulated Internet gambling industry in order to raise much-needed revenue for federal and state budgets.

The most significant change from the previous version, introduced in 2009, is the addition of a provision that allows each State and Tribal Government to be paid six percent of all deposits placed by residents of their jurisdiction with licensed online gambling operators - a change that is expected to generate up to $30 billion over 10 years.

Furthermore, the legislation would assign 25 percent of the federal revenue collected on gambling operators - estimated at $42 billion over 10 years - to provide assistance to children in foster care.

According to the political publication The Hill, McDermott favoured the new provisions because "state government budgets have been hit hard by the recession and social services, like children's health insurance, are suffering."

The legislation is meant to serve as a companion to the Internet Gambling Regulation, Consumer Protection and Enforcement Act of 2009 (H.R. 2267), legislation introduced by House Financial Services Committee Chairman Barney Frank that would permit licensed operators to accept online wagers from individuals in the U.S.