New Internet Gambling Legislation to Be Introduced

JeffreyS

JeffreyS

Enthusiast
Today Rep. Jim McDermott (D-WA)plans to introduce the Internet gambling Regulation and Tax Enforcement Act of 2010, an updated bill that would allow taxes and fees to be collected on Internet gambling wagers. Building on a previous version of the bill introduced in 2009 which permitted federal taxes to be collected, this version would allow each State and Tribal Government to collect a six percent tax on all online gambling deposits placed in their jurisdiction. It would also allocate 25 percent of the federal revenue collected to helping children in foster care.

During a time when nearly every state is facing budget shortfalls, this additional tax will generate up to $30 billion over 10 years for State and Tribal governments, giving members of Congress another good reason to consider replacing UIGEA with regulation.

For more information, be sure to check out this article from The Hill.

Thanks,

Michael Waxman
Safe and Secure Internet Gambling Initiative
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xXSmuggla

xXSmuggla

Rock Star
This sound's like a bittersweet situation for online poker players, sweet in the fact that Internet Gambling would be considered "legal" (and its helping foster kids, plus revenue for the state) , but bitter in the fact that their are taking 6% tax, that seems really high compared to taxes on other items, what do you guys think?
 
StormRaven

StormRaven

Cardschat Elite
I agree. In Michigan we have a 6% sales tax so not a real big deal except maybe to those who deposit often?
 
Kasanova King

Kasanova King

Visionary
This sound's like a bittersweet situation for online poker players, sweet in the fact that Internet Gambling would be considered "legal" (and its helping foster kids, plus revenue for the state) , but bitter in the fact that their are taking 6% tax, that seems really high compared to taxes on other items, what do you guys think?


If this legislation passes, along with the other 2 bills, most likely the online poker sites will pay most of the tax since it is just as much, maybe less than what they have to pay now for 3rd party processors. ;)
 
jernest

jernest

Rock Star
taxes and fees to be collected on Internet gambling wagers....

... to collect a six percent tax on all online gambling deposits

So would the new taxes and fees only apply to deposits or would/could they also encomompass individual wagers?

I don't mind the per deposit deal, but if it turns into an extra rake, well things change a whole lot IMO.
 
C

CasperJames

Rock Star
I agree. In Michigan we have a 6% sales tax so not a real big deal except maybe to those who deposit often?

Ours is 9.5% in TN, so 6% on a deposit doesn't bother me at all if the sites are regulated in the U.S.
 
wsorbust

wsorbust

Cardschat Elite
Well, here's a glass in the air for it to actually happen. Either way, I'm not really sure it matters, to anyone? or at least in my case. I don't plan to play for reals any time in the near future anyway.
 
IcyBlueAce

IcyBlueAce

Visionary
The sites better pay this tax, I would think so since depositing would be so much more easier..

If they are talking about putting in a "tax rake", then I will join the mob of pissed off poker players and overtake the government.
 
X

Xavier

Rock Star
I am in the UK so I won't have to pay this 6% tax anyway, but it would probably be beter if the sites paid it as that might attract more fish to play :icon_pira

Hope they are definitely legalising it as it may make online poker get easier again like a few years ago.
 
cjatud2012

cjatud2012

¯\_(ツ)_/¯
So when will this go into effect? What does this mean for sites like Party and Titan?
 
kmixer

kmixer

Legend
This sound's like a bittersweet situation for online poker players, sweet in the fact that Internet Gambling would be considered "legal" (and its helping foster kids, plus revenue for the state) , but bitter in the fact that their are taking 6% tax, that seems really high compared to taxes on other items, what do you guys think?

Not so bad considering NJ taxes sales at 7%. However rake is also a factor that will continue to exist.
 
Numbuh 0ne

Numbuh 0ne

Rock Star
This sounds like something that should have been done years ago.
It good to see the U.S. is finally joining the civilized world.
 
kmixer

kmixer

Legend
I don' think they will tax the rake. it is so much easier to tax your deposit.

You deposit $106, $100 goes to the site and $6 goes to the government. This opens the books of any participating online poker site to the US governemnt so we will have to see how that one plays out. However this ipen all new doors for new sites like Ballys Online with full gambling regulations already in place.
 
Monoxide

Monoxide

Cardschat Elite
Lets see, a new tax on the fish for more money in my tax-free pocket bringing in more players to deposit....

or an all-round ban in the future on depositing/withdrawing from online poker.


ill take taxes.
 
JeffreyS

JeffreyS

Enthusiast
So would the new taxes and fees only apply to deposits or would/could they also encomompass individual wagers?

I don't mind the per deposit deal, but if it turns into an extra rake, well things change a whole lot IMO.


The 6% tax would be paid by the gambling operator so if a player deposits $100 they can still play with all of it. They will still have to pay taxes on winnings like at a land-based casino.
 
P

PasoTex

Rock Star
I hope this bill passes. If the game is legitimized, I think it will draw a lot more players from the U.S. The tax is not too steep and is worth paying if it will allow the game to grow. Let's keep our fingers crossed.
 
Mortis

Mortis

Legend
A tax to deposit? I'm all for that, since I don't even deposit online, hehe. Though, I may have to once, if I get my bankroll high enough that I want to withdrawl.
 
blackmax

blackmax

Rock Star
If this is true isn't this what we have been waiting for? something legit that says it legal for us to play? Sounds like winner to me but i would like to know a few more details about this bill.I dunno about anyone else but i hope other states follow washinton states lead on this thing but it really would benifit us all in the long run.By the way nice post
 
gnk2727

gnk2727

Rock Star
This sounds too good to be true. I'll be ecstatic and the 1st in line to pay taxes on it just so I could play online leagally.
 
R

Ranny

Legend
Awards
4
I gotta feel sorry for you american brothers, in uk we don't get taxed on poker winnings, no tax at all on the internet.

Downside is they are hitting casinos heavily on the rake so not all good, plus we don't get free beer.
 
IcyBlueAce

IcyBlueAce

Visionary
The 6% tax would be paid by the gambling operator so if a player deposits $100 they can still play with all of it. They will still have to pay taxes on winnings like at a land-based casino.

I've never been to a casino that taxed me for my poker winnings.
 
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