Millions of Americans enjoy gambling online and should be able to do so without government interference. In fact, traditional forms of legalized gambling already exist in nearly every state. Rather than tell Americans what they can and cannot do online, which is ineffective, the government should regulate Internet gambling to ensure that proper protections are in place to protect consumers and ensure the integrity of Internet gambling financial transactions.

Internet Gambling Regulation and Enforcement Act of 2007
U.S. Representative Barney Frank (D-MA) introduced legislation on April 26, 2007 that would establish a regulatory and enforcement framework for licensed gambling operators to accept bets and wagers from individuals in the U.S. The Internet Gambling Regulation and Enforcement Act (H.R. 2046) would put in place practical and enforceable standards to bring transparency to Internet gambling and provide consumers the protections they expect and deserve. The bill protects against compulsive and underage gambling, money laundering, fraud and identity theft. It does not differentiate between different types of Internet gambling.

• Bill Text
• Bill Summary
• Frank's Press Release
• Q&A
• Frank Letter to Colleagues
• Congressional Co-Sponsors

Internet Gambling Regulation and Tax Enforcement Act of 2008
In March 2008, U.S. Representative Jim McDermott (D-WA) introduced the Internet Gambling Regulation and Tax Enforcement Act of 2008 (H.R. 5523). This bill serves as a companion to Representative Frank’s Internet Gambling Regulation and Enforcement Act and would ensure that taxes are collected on regulated Internet gambling activities.

The legislation strengthens provisions in an earlier version of the bill introduced last year, and includes an enhanced reporting mechanism under which licensed gambling operators are required to provide each customer an annual statement of winnings and losses. It also establishes a two percent licensing fee that is paid by the operator, not the individual gambler. The licensing fee is designed to equalize the costs of operation in providing gambling services online, as opposed to brick-and-mortar casinos providing gambling services in-person, and would only be applied to online operators.   

Collectively, the Frank and McDermott bills would remove an unnecessary government prohibition and protect an individual’s freedom to use the Internet, including gambling online, as they choose. Current efforts to prohibit Internet gambling are futile. Millions of Americans are gambling online without proper protections.

As Congress works to find funding for important government programs, the legislation is expected to generate between $8.7 billion and $42.8 billion in revenues for the U.S. Treasury in the first ten years of enactment, according to analysis prepared by PriceWaterhouseCoopers. While significant amounts, industry experts believe that these figures are conservative.

• Bill Text
• Floor Statement
• Frequently Asked Questions
• McDermott Letter to Colleagues
• PriceWaterhouseCoopers Tax Analysis
• Additional Information on H.R. 5523

Legislation to Stop Implementation of Internet Gambling Ban
U.S. Representatives Barney Frank (D-MA) and Ron Paul (R-TX) introduced legislation, H.R.5767, in April 2008 to prohibit the Department of the Treasury and Federal Reserve System from proposing or implementing any regulations that prohibit Internet gambling, as required by the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA). 

Over 200 comments were submitted to the Department of the Treasury and Federal Reserve System on the serious regulatory burdens U.S. financial services community would face in attempting to enforce UIGEA.  Representatives of the federal agencies also agreed in testimony to Congress that the law was likely unworkable and would be difficult to enforce. This bill seeks to relieve financial services companies of this burden.

• Bill Text
• Reps. Frank and Paul's Press Release
• Reps. Frank and Paul's Letter to Colleagues
• Financial Services Committee Members' Letter to Treasury Department and Federal Reserve