The organization Safe & Secure Internet Gambling Initiative (SSIGI), which states that each year, millions of Americans ignore attempts by the government to prohibit Internet gambling, and wager more than US$100 billion with offshore gambling operators, has acclaimed the introduction of legislation today by Senators Ron Wyden (D-OR) and Judd Gregg (R-NH), the Bipartisan Tax Fairness and Simplification Act of 2010, which includes provisions to legalize, regulate and tax Internet gambling.

According to SSIGI, a recent Joint Committee on Taxation analysis found that the U.S. could receive up to US$41 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). The analysis is based on the provision of a federal license for operators that would allow them to offer online gambling throughout the U.S., while maintaining existing federal prohibitions on any form of sports betting.

Michael Waxman, spokesperson for the SSIGI, said: “With so much media focus on the differences between Democrats and Republicans in Congress, this bipartisan initiative highlights the growing support on both ends of Capitol Hill for replacing the failed prohibition on Internet gambling with a system to regulate the industry, protect consumers and generate billions in new revenue. We applaud Senators Wyden and Gregg for taking the initiative to address and drive this issue.”

Provisions in the Bipartisan Tax Fairness and Simplification Act of 2010 to regulate Internet gambling are similar to those included in the Internet Gambling Regulation, Consumer Protection and Enforcement Act (H.R. 2267), introduced last year by House Financial Services Committee Chairman Barney Frank (D-MA). Similarly, Chairman Frank’s bill has attracted a bipartisan group of 65 co-sponsors, including Representatives John Conyers (D-MI), chairman of the Committee of the Judiciary; Pete King (R-NY), ranking member of the Homeland Security Committee; and George Miller (D-CA), chairman of the Committee on Education and Labor.

Senator Wyden previously introduced an amendment in the Senate Finance Committee to use Internet gambling revenue to offset the costs of health care reform. That amendment was not brought to a vote, given the decision by the Committee to limit revenue provisions to matters closely related to heath care.

SSIGI adds: “In a struggling economic environment, regulated Internet gambling would generate billions 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.” (E-02.26.10)

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