On Poker: Federal online gambling legislation clears big hurdle

[WestVirginiaRebel]

mysanantonio.com:

Maybe there are some teeth in the push for legalization and sensible federal regulation of the Internet gambling industry after all.

Sponsored by Rep. Barney Frank (D-Mass.) — chairman of the House Financial Services Committee — HR 2267 is a bill designed to establish federal oversight of an online gambling industry that currently resides in murky legal waters for U.S. players.

It passed overwhelmingly 41-22 via committee vote last week, advancing the legislation to the House floor, where it hopefully will be voted on before the end of the 2010 session. If it gets that far, it will be the deepest penetration of online gaming law at the federal level in history.

“The good news is this is significant progress,” said Michael Waxman of the Safe and Secure Internet Gambling Initiative. “Last week's vote showed the bi-partisan support is there.”

HR 2267 has the potential to open an enormous revenue stream in an era where cash is badly needed at all levels of government.

One analysis completed by the Congressional Joint Committee of Taxations concluded that regulated online gambling could generate $42 billion in revenue over the first 10 years of HR 2267 implementation at the federal level.

At the state level, a 6 percent deposit fee could generate an additional $30 billion.

“Those figures assume you are starting with an industry where millions of players are already engaged,” Waxman said. “And with regulation, there is an expectation that many more will take up and enjoy this form of recreation. There is a strong possibility that this bill would be included in a larger legislative package as a way to offset the cost of other programs.”

If HR 2267 is signed into law, sites will have to apply for federal licensing. There's no language about a cap on the licenses, but in a regulated environment, safeguards against such things as identity theft, compulsive gambling behavior and underage gambling would have to be in place in order to secure one.

Sites able to comply and secure licensing will strike oil. Those that cannot will fade away.
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Is online gambling finally going to become legit? If so, then that's good news-assuming the Obama administration doesn't find some way to tax it out of existence.

[clearvision]

It is stupid to try and regulate human behavior if it does not impact another human. This is where I leave the "conservative" brand and cross to "libertarian" mind set. Government needs to get out of trying to be your parents.

[pollyannaish]

It is stupid to try and regulate human behavior if it does not impact another human. This is where I leave the "conservative" brand and cross to "libertarian" mind set. Government needs to get out of trying to be your parents.

 

Amen! I think that the government needs to kick us all out of the house and make us reap the consequences of our own behavior. Nanny state is nanny state, and even on many, many things I believe are morally wrong I still believe that someone else's choices on these matters are their own.

[Argyle58]

Is online gambling finally going to become legit? If so, then that's good news-assuming the Obama administration doesn't find some way to tax it out of existence.

 

Oh no, they will not tax it out of existence, they love vice. However, any sort of regulation will definitely mean that all winnings will be reported to the IRS (they don't care about losses, those are your responsibility to document) and the appropriate W-G's will be issued to all U.S. taxpayers who participate.

 

Since there is no evident potential for catestrophic harm to anyone here, the sole reason for government involvement is for the cash. In this, they are no different than the Mafia......find an unregulated business, institute oversight (called "Protection" by the mob), then rake the profits.

[AceRimmer]

Is online gambling finally going to become legit? If so, then that's good news-assuming the Obama administration doesn't find some way to tax it out of existence.

 

Oh no, they will not tax it out of existence, they love vice. However, any sort of regulation will definitely mean that all winnings will be reported to the IRS (they don't care about losses, those are your responsibility to document) and the appropriate W-G's will be issued to all U.S. taxpayers who participate.

 

Since there is no evident potential for catestrophic harm to anyone here, the sole reason for government involvement is for the cash. In this, they are no different than the Mafia......find an unregulated business, institute oversight (called "Protection" by the mob), then rake the profits.

 

I go to one of the casinos down here every couple of years and when I stay away from the slots and blackjack tables and just stick to craps, I usually walk out a couple of hundred bucks ahead. Nothing major, and I'm never gonna play online poker. If other Americans want to, hell, let them, and tax the winnings. It's a win, win, unless you lose online.