Each year, millions of Americans ignore attempts by the government to prohibit Internet gambling and wager more than $100 billion with offshore gambling operators. A recent Joint Committee on Taxation analysis found that the U.S. could receive up to $42 billion in federal revenue over the next decade if Internet gambling is regulated as proposed by Representatives Barney Frank (D-MA) and Jim McDermott (D-WA).

New Revenue for Critical Government Programs

In a struggling economic environment, regulated Internet gambling would generate approximately $72 billion in new revenue for federal and state governments to fund key economic and social programs. The new revenue stream would primarily be generated through the collection of applicable corporate and individual taxes, which are currently owed but not collected, taxes consistent with those collected from the land-based casino industry, and from the collection of a fee on deposits payable by the operators.

Resources

• New Bill Would Regulate and Tax Internet Gambling
• Joint Committee on Taxation Revenue Analysis
• Rep. McDermott’s Press Release on Joint Committee on Taxation Analysis
• Joint Committee on Taxation Projects Internet Gambling Regulation Would Generate Nearly $42 Billion in New Revenue
• PricewaterhouseCoopers Tax Revenue Analysis
• Rep. Jim McDermott: Protect Online Gamblers, Collect Tax Revenues - The Hill
• Reps. Steve Israel and Peter King: Web Gambling: Tax, Don't Ban - The New York Post
• Internet Gambling Regulation Provides Opportunity to Generate Tens of Billions for Government Programs