Rep. Jim McDermott (D-WA) has introduced in the House of Representatives “The Internet Gambling Regulation and Tax Enforcement Act of 2013.”
As currently written, the bill aims to establish a 12 percent deposit tax paid by licensed operators.
The tax would not be paid by players.
According to John Brennan of the NorthJersey Blog:
Under McDermott’s proposal, the federal government would collect 4 percent of the tax, while qualified states and tribes that participate in the federal regime would receive 8 percent. The online gambling tax payable to states and tribes would be dependent upon the location of the customer in the respective qualified state or tribal area at the time the customer makes a deposit. This is consistent, McDermott’s representatives point out, with the point of consumption tax methodology being implemented in the UK.
So far, the effort has support from The Safe and Secure Internet Gambling Initiative.
Michael Waxman, a spokesperson for the Safe and Secure Internet Gambling Initiative, says that with all of the fighting in DC over funding issues, “you’d hope this opportunity to generate billions in economic activity and new government revenues will get serious consideration, not to mention the many new jobs that would be created.”
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