U.S. Congress Holds Hearings Regarding Online Gambling Part II

Author: Chris  //  Category: Online Casino News

Of course opposition to legalizing online gambling and casinos in the United States is coming from conservative leaders. They make valid arguments that online gambling is hard to police. Even though there have been major improvements in software and operating systems, spotting underage and problem gamblers is still difficult. Some members of the committee brought up examples of problem and compulsive gamblers getting lost in online gambling. Republican Representative Bob Goodlatte of Virginia argued that online gambling has dropped among college aged males since the Unlawful Internet Gambling Enforcement Act was passed. He was one of the original supports of the bill. Compulsive and underage gambling is a problem. “They are tragedies right now,” claimed Rep. Earl Blumenauer, Democrat of Oregon. He argued and others argued that both online and land based casinos don’t want that “black eye.” However, those problems are going to exist no matter what, so why not let regulation help police that type of action.

Moral implications are important and should be examined. However, regulated online gambling’s biggest debate amongst supporters is the two percent deposit tax. The tax would give state and tribal governments a chance to collect on some of the money coming in. It cod be as much as $30 billion over the next decade when combined with some of the states’ income taxes. Most supporters both in Congress and the U.S. casino industry do not think the tax is fair. Representatives from Nevada weighed in on the proposed tax. Rep. Dean Heller asked if the tax would make sense if someone walked into a department store with money and walked out with nothing.

Rep. Shelley Berkley likes online gambling. Most representatives from Nevada believe that online gambling would find a natural jurisdiction in the state, and create over 30,000 jobs. However , Berkley also claimed that the bill would not gain support with this tax. Rep. Berkley feels, “The issue of taxation and legalization are separate and distinct.”

McDermott argued that his research with online gambling operators showed they would rather pay the deposit tax than a gross gambling tax, because they know players are going to spend that money anyway. “In talking to the industry, they say this is the best way to do it.” In any case, the debate is on and making progress. Online gambling within the U.S. is now more than just an idea.

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