Politechan

The ink hasn’t even dried on Barney Frank’s new Internet gambling bill and other members are jumping up and down trying to tax any company who actually dares to take a bet.  A new bill by Rep. Jim McDermott, the Internet Gambling Regulation and Tax Enforcement Act, HR 2268, “will allow the United States Government to extract tax revenue from the internet gambling industry. The bill’s text notes, “Each licensee… shall be required to pay an internet gambling license fee by the end of each calendar month in an amount equal to two percent of all funds deposited by customers during the preceding month.”

Unauthorized bets or wagers are taxed at a hefty 50% and all money is sent to the United States Treasury. Full disclosure of the names and addresses of licensees, the gross wins and losses by each person wagering, the total of “net internet gambling winnings,” the amount of tax paid, and account balances are required once per year. In terms of bookkeeping under McDermott’s proposed bill, “Each person liable for fees… shall keep a daily record showing deposits… in addition to all other records required.”

Of course, Internet gambling first has to be made legal before the taxes can start coming in.  Senate leader Reid (from Nevada no less) is not a supporter of Internet gambling, so don’t get your hopes up just yet.

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