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 Two lawmakers introduced bills over the summer that would legalize
some form of Internet gambling nationwide. Last week, Rep. Jim
McDermott, a Democrat from Washington, introduced a bill that would
tax federally-sanctioned online wagering.
The bill, dubbed the Internet Gambling Regulation and Tax
Enforcement Act of 2013, could compel online operators to hand over
up to 12 cents of every dollar players deposited. The federal
government would take four cents. The state or tribe in which the
gambler is playing could also opt to collect 8 cents on the dollar.
McDermott introduced similar bills in 2010 and 2011, without
success.
This time, the measure is meant as companion legislation to a bill
introduced in June by Republican New York Congressman Peter King.
King's proposal, called the Internet Gambling Regulation, Consumer
Protection and Enforcement Act of 2013, would open the door to all
forms of casino games.
In July, Rep. Joe Barton, a Texas Republican, introduced a more
limited bill that would pave the way for states to legalize online
poker without fear of federal intervention. Barton's legislation,
dubbed the Internet Poker Freedom Act, would only apply to poker and
would allow states to opt out of the federal system.
Capitol Hill could see another legislative push for online gambling
before the session is out. Democratic Sen. Harry Reid of Nevada, who
has said the issue is one of the most important that his home state
faces, is working on new legislation with his Nevada colleague,
Republican Sen. Dean Heller.
Gamblers wanting to make wagers from the privacy of their homes have
had few options in recent years. The federal government cracked down
definitively on Internet gambling in 2011. But the same year, the
U.S. Justice Department issued a ruling making online gambling legal
so long as it's permitted on the state level.
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Congress flirted with an online gambling bill in 2012, but industry
infighting and partisan disagreement ultimately doomed it. When that
legislation failed, states began moving ahead on their own.
Nevada, New Jersey and Delaware have now legalized some kind of
online gambling, and legislatures in other states are weighing the
issue.
Morgan Stanley predicts that by 2020, online gambling in the U.S.
will produce the same amount of revenue as Las Vegas and Atlantic
City markets combined: $9.3 billion.
Industry players hailed the McDermott bill as a sign that Congress
may finally move forward with comprehensive Internet gambling
regulation.
Michael Waxman, spokesman for Safe and Secure Internet Gambling
Initiative, said that together, the year's gambling bills could
create a fairer regulatory climate.
"With all of the fighting in D.C. over funding issues, you'd hope
this opportunity to generate billions in economic activity and new
government revenues will get serious consideration," he said.
[Associated
Press; HANNAH DREIER]
Copyright 2013 The Associated
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