..

U.S Could Reap Billions in Tax Revenue With Online Gambling

Written by:
Guest
Published on:
Feb/26/2009

(Reuters) - The United States could raise nearly $52 billion in revenue over the next decade by lifting a three-year-old ban on Internet gambling and taxing the activity instead, according to a study.

Gambling supporters hope the new analysis prepared by accounting firm PricewaterhouseCoopers will help propel efforts in Congress this year to repeal the 2006 Unlawful Internet Gambling Enforcement Act.

"There is a dramatic need to have a regulated system that protects American consumers. Right now, it's the Wild West," Jeffrey Sandman, a spokesman for the Safe and Secure Internet Gambling Initiative, told Reuters on Wednesday.

That group includes the London-based Remote Gambling Association, which represents European online companies that lost billions in market value after Congress passed the 2006 law and they withdrew from the U.S. market.

The legislation attempted to squash online gambling in the United States by barring businesses from knowingly accepting payments in connection with unlawful Internet gambling, including payments made through credit cards, electronic fund transfers and checks.

But PricewaterhouseCoopers' latest estimate of how much the United States could raise from regulating and taxing Internet gambling is about 22 percent higher than it was in 2007 because U.S. online gambling has grown despite the ban, Sandman said.

The accounting firm's study was specifically done for UC Group, an online payment service company that would benefit from U.S. action to legalize Internet gambling.

House of Representatives Financial Services Committee Chairman Barney Frank plans to reintroduce a bill this year to overturn the 2006 ban, which was approved when Republicans still controlled both houses of Congress and Republican George W. Bush was in the White House.

Gambling advocates hope the U.S. government's need for new revenue in the aftermath of huge bailout and stimulus packages will boost chances for Congress to replace the ban with new measures to regulate and tax online gambling.

The threat of a possible European Union trade challenge also could improve the bill's prospects this year.

The Remote Gambling Association accuses the U.S. Justice Department of singling out European online gambling companies like PartyGaming and 888.com for prosecution while allowing U.S. companies to operate freely.

The European Commission, acting on industry petition, began a formal investigation into that issue last year and is expected to release a report next month saying it has grounds to take action at the World Trade Organization.

Anurag Dikshit, a founder of PartyGaming, pleaded guilty in December to Internet gambling charges and agreed to pay $300 million in fines. He still faces possible jail time under a deferred sentencing arrangement.

EU industry officials said the pressure on Dikshit to make a deal showed the Justice Department had crossed a major line in its prosecution of cases.

Gambling News

Can I Bet the Little League World Series on the Caesars Sportsbook App?

Can I Bet the Little League World Series on the Caesars Sportsbook App?

Caesars Sportsbook prohibits betting on youth events such as the Little League World Series.  Other popular sportsbooks like long established BetOnline have zero qualms about taking bets on the Little League World Series and have already released odds for 2022 (Wed, Aug 17, 2022 – Sun, Aug 28, 2022).

What Are the Sports Betting Laws in USA and Canada?

What Are the Sports Betting Laws in USA and Canada?

When setting up a bookie business, you'll need to know the sports betting laws in depth. Here's a brief rundown on the laws in the USA and Canada.

What Are the Biggest Business Blunders Online Bookie Software Will Help Prevent?

As a bookie, mistakes can be costly. Having the right online bookie software can help minimize potential blunders. Here's how.

Joe Flacco Expected to Start for the Jets in Week 1 vs. His Old Team the Ravens

Joe Flacco Expected to Start for the Jets in Week 1 vs. His Old Team the Ravens

With Zach Wilson’s knee surgery today now considered a success and with the team not willing to bring him back until he’s fully ready, Jets’ QB Joe Flacco is in line to start the regular-season opener vs. his former Ravens team, according to Adam Schefter of ESPN.

Massapequa Odds to Win the 2022 Little League World Series

Massapequa Odds to Win the 2022 Little League World Series

Massapequa Coast is considered "America's Team" by some this year.  They become the first Long Island team to go to the World Series since Rockville Centre in 1978.  Better still, Massapequa has never played in the Little League World Series in its 72-year history.

Syndicate