Is Legalized, Regulated Online Poker on the Horizon for the United States?

Many politicians located in the United States are voicing their opinions about legalizing online gambling to allow them to also tax it in order to take a bit of the pressure off of depleted government accounts, but with strong opposition from the Republicans, pro sports leagues, and conservative groups we can only wonder if this dream will one day become a reality.

Two well known Democratic Representatives Jim McDermott of Washington and Barney Frank of Massachusetts are currently acting towards repealing the Unlawful Gambling Enforcement Act that will go into full effect on June 1, 2010 and instead they are hoping to legalize online gambling which would be taxed immediately. If their proposed bill is approved there would be a 6% tax on any deposits made through US gambling sites and would go directly to the state that the player resides in. In addition to this tax there would be another 2% that would be taken for the federal government.

If this particular bill is approved it’s estimated by the Joint Committee of Taxation that over the next 10 years approximately $30 billion would be earned for tribal governments and state while another $42 billion would be earned for the federal government.

McDermott points out that if the bill is approved that it will help each state be able to afford important things such as health care or education opportunities for children. For example the state of Arizona recently had to discontinue a program that provided health care for over 40,000 children. He basically points out that many states are losing programs due to not having the funding available that is needed to keep them running by here is a source of money that can help to solve that problem.

Those who support the bill to legalize online gambling in the United States definitely have a fight on their hands. Republicans are coming fully prepared to present their case by highlighting the ties of former lobbyist Jack Abramoff who is jailed and has been linked to online gambling. Other groups including Focus on the Family is against the bill because they believe it will only lead to an increase of gambling addiction in America. They report that they believe there are nearly 15 – 20 million people who already have an addiction problem in the US.

The casino industry that was at one time was against the bill is now supporting the change. However, those who are currently representing a professional sports league are completely against it because they believe it will increase wagers that are placed on their game doubling business for bookies.

Unfortunately due to an overbooked schedule it has delayed the bill being considered but Frank who is the chairman of the House Financial Services Committee, plans on holding a vote this spring which he is confident will pass. Robert Menendez of New Jersey who is the Democrat Senator proposed a bill in August 2009 that is requesting to legalize and tax any online “games of chance” and online poker rooms.

There are many individuals out there who can share valid points on both sides but who will win? This is a battle not only amongst government officials but America as a whole. Will online gambling become legalized and if so what kind of impact will it have on the United States?

Posted by Joel on May 10 2010. Filed under Poker News. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry