|
 Internet
Gambling Revenue to
be Used for Job
Training and Foster
Care Programs
Legislation’s
introduction shows
continued support
for Internet
gambling regulation
(Washington, D.C. –
July 16, 2008) –
Rep. Jim McDermott
(D-Wash.) introduced
legislation
yesterday that
directs a potential
$40 billion over the
next 10 years to be
spent on job
training for those
in the declining
sectors of the
economy and
educational
assistance for
foster care youth.
The legislation,
Investing in our
Human Resources Act
of 2008 (H.R. 6501),
would be funded
through new revenue
generated by
regulated Internet
gambling activities.
“We have an ideal
opportunity to
invest billions of
dollars in American
workers and our
struggling economy
without increasing
the federal
deficit,” said Rep.
McDermott in
speaking about the
Investing in our
Human Resources Act
(IHRA). “IHRA would
utilize a funding
stream that would
become available
should Congress
decide to legalize
and regulate
internet gambling,
which would protect
consumers and
collect tax revenue
that is currently
offshore.”
A provision in the
legislation also
encourages
responsible Internet
gambling behavior
and an awareness of
unsafe practices,
something which has
been praised by
problem gambling
advocates.
“I believe that the
McDermott bill could
be a positive step
to help raise
awareness about the
dangers of unsafe
gambling practices
and the availability
of addiction
treatment,” stated
the Executive
Director of the
National Council on
Problem Gambling
Keith Whyte.
In a sign that the
legislation has
support from key
members of the
Democratic
Congressional
leadership, Reps.
George Miller (D-Calif.)
and John B. Larson
(D-Conn.) are
original co-sponsors
of the legislation.
Rep. Miller is a
member of the
Democratic
Leadership and
chairman of the
House Democratic
Policy Committee.
Rep. Larson serves
as vice chair of the
Democratic Caucus
and assists in
organizing and
running the
Democratic Caucus.
Introduction of IHRA
demonstrates the
growing support in
Congress to regulate
Internet gambling.
”It is encouraging
that Congress is
seeking to regulate
Internet gambling
and put the billions
in new revenue to
good use,” said
Jeffrey Sandman,
spokesman for the
Safe and Secure
Internet Gambling
Initiative. “We need
to change the
current path, where
the prohibition of
Internet gambling
allows for billions
of dollars to be
lost in an
underground,
uncontrolled
marketplace ripe for
criminal
exploitation.”
Revenues from
regulated Internet
gambling are
estimated to be
between $8.7 billion
and $42.8 billion
over 10 years,
according to a
recent tax revenue
analysis prepared by
PricewaterhouseCoopers.
Through IHRA, these
revenues would be
allocated annually
to each state
through a new
Transitional
Assistance Trust
Fund. A state would
be entitled to
receive its
allotment based on
its percentage of
the total
population.
To generate
additional support
for IHRA, Rep.
McDermott circulated
a letter to all
members of Congress.
It includes a chart
indicating projected
allocations of
funding by state. A
copy of the letter
is available at
www.safeandsecureig.org/media/mcdermottdearcolleague-IHRA.pdf
Previously, a
framework to
regulate and ensure
the collection of
taxes on Internet
gambling activities
was proposed in
companion pieces of
legislation
introduced by Reps.
McDermott and Barney
Frank (D-Mass.)
The Internet
Gambling Regulation
and Enforcement Act
(H.R. 2046),
introduced by Rep.
Frank in April 2007,
establishes an
enforcement
framework for
licensed gambling
operators to accept
bets and wagers from
individuals in the
U.S. It would
include a number of
built-in consumer
protections,
including safeguards
against compulsive
and underage
gambling, money
laundering, fraud
and identity theft.
The legislation
would also reinforce
the rights of states
to control what, if
any, level of
Internet gambling is
permissible within
their borders,
including the
ability to apply
additional taxes,
and to ensure that
appropriate consumer
protections and
limitations were in
place.
Rep. McDermott’s
earlier bill, the
Internet Gambling
Regulation and Tax
Enforcement Act
(H.R. 5523), would
ensure the
collection of taxes
on regulated
Internet gambling
activities. A
revised version of
the bill, introduced
in March 2008,
includes an enhanced
reporting mechanism
under which licensed
gambling operators
are required to
provide each
customer an annual
statement of
winnings and losses.
It also establishes
a two percent
licensing fee that
is paid by the
operator, not the
individual gambler.
The licensing fee is
designed to equalize
the costs of
operation in
providing gambling
services online, as
opposed to
brick-and-mortar
casinos providing
gambling services
in-person, and would
only be applied to
online operators.
-----
Gambling911.com News
Wire
Originally published
July 16, 2008 11:32
am EST
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