New Bill Would Tax 2 Percent of Poker DepositsSites, Not Players, Would Be Responsible for Paying Taxby Bob Pajich | Published: Jun 08, 2007 | |
 
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A companion bill to Barney Frank's Internet Gambling and Regulation Enforcement Act was introduced in the House of Representatives last night by Washington State Congressman Jim McDermott.
McDermott's Safe and Secure Internet Gambling Initiative would tax 2 percent of a person's online poker or gambling deposits. The licensed sites would be responsible to pay the government the 2 percent of all deposits made for real-money play.
The Financial Crimes Enforcement Network would be responsible for licensing the sites. According to the Safe and Secure Gambling Initiative, a lobby organization that's fighting for online gambling's legality, between $6 billion and $25 billion would be raised from McDermott's bill through taxation in the first five years.
Nevada Congresswoman Shelley Berkley is the bill's co-sponsor. Berkley is also sponsoring a bill that calls for an intensive study on Internet gambling to determine if current technology could be used to taxed, regulate, and provide protection for minors.
Frank's bill would legalize online gambling, including poker, in the United States. It would provide a regulatory framework to tax and regulate online gambling.
Earlier this week, Florida Rep. Robert Wexler introduced a bill that would exempt poker and other games of skill from all current anti-online gambling laws, including the Unlawful Internet Gambling Enforcement Act that was passed last year.
McDermott's Safe and Secure Internet Gambling Initiative would tax 2 percent of a person's online poker or gambling deposits. The licensed sites would be responsible to pay the government the 2 percent of all deposits made for real-money play.
The Financial Crimes Enforcement Network would be responsible for licensing the sites. According to the Safe and Secure Gambling Initiative, a lobby organization that's fighting for online gambling's legality, between $6 billion and $25 billion would be raised from McDermott's bill through taxation in the first five years.
Nevada Congresswoman Shelley Berkley is the bill's co-sponsor. Berkley is also sponsoring a bill that calls for an intensive study on Internet gambling to determine if current technology could be used to taxed, regulate, and provide protection for minors.
Frank's bill would legalize online gambling, including poker, in the United States. It would provide a regulatory framework to tax and regulate online gambling.
Earlier this week, Florida Rep. Robert Wexler introduced a bill that would exempt poker and other games of skill from all current anti-online gambling laws, including the Unlawful Internet Gambling Enforcement Act that was passed last year.
3 Comments
yimyammer
over 2 years ago
does anyone know of a way of determining what this equats to in terms of per pot expense to the player or poker site (I am assuming the players will ultimately bear this expense via higher rake, lower rakeback, less incentives, etc, etc)
ricks322
over 2 years ago
As I read it they would take $2 out of every $100 you deposit.
WatZot
over 2 years ago
To me this would be be just like tokes for the dealer at your local Brick and Mortar. Or you could think of it as a cover charge to get in the door. Rakes would still be the same as before, because the player is paying the 2%.