Rep. Jim McDermott's Committee Finds that Online Gaming Would Generate $42 Billion in Revenue Over 10 Years

The Wall Street Journal recently reported that an analysis by Rep. Jim McDermott’s (D-WA) Joint Committee on Taxation found that HR 2267, introduced by Representatives Barney Frank (D-MA) and Jim McDermott (D-WA), pictured left, would generate nearly $42 billion over 10 years.

According to Safe and Secure Internet Gambling Initiative spokeperson Michael Waxman, "This analysis further reinforces the fact that a regulated environment will generate billions in new revenue to offset the costs of health care reform or other vital government programs."

He added, "We believe this tax revenue analysis will encourage immediate discussions and consideration of pending legislation to regulate Internet gambling. With everyone acknowledging that attempts to prohibit the activity have failed, this provides even more incentive for Congress to act."

Since its introduction in May, Frank’s bill has attracted a bipartisan group of more than 60 co-sponsors has signed onto the bill, which would allow licensed gambling operators to accept wagers from individuals in the US, and put consumer protections into place to safeguard against compulsive and underage gambling, money laundering, fraud, and identity theft. The bill also offers each state the right to determine whether to allow Internet gambling within their own borders.

McDermott's companion bill, the Internet Gambling Regulation and Tax Enforcement Act (HR 2268), proposes to raise revenue through individual and corporate taxes and license fees on regulated Internet gambling.