Online Gambling Tax Benefits Hearing Set For May 19th
The House Ways and Means Committee has scheduled a hearing on tax issues related to possible changes in the online gambling laws in the US. House ways and Means Chairman announced the hearing on Wednesday, and it is scheduled for May 19th.
The Unlawful Internet Gambling Enforcement Act is set to take effect in less than three weeks. The UIGEA makes it illegal for financial institutions to knowingly process gambling payments to and from online gambling sites.
Several pieces of legislation have been introduced that would change the current laws in the country. Representative Barney Frank has introduced two bills, one to eliminate the UIGEA, and the other to lay the groundwork for a regulated Internet gambling industry in the US.
Representative Jim McDermott has introduced companion legislation to Frank's bills that would set up the taxation portion of the online gambling industry. The Internet Gambling Regulation and Tax Enforcement Act of 2010 sets the tax rates that online gambling operators, as well as state and tribal governments would pay to the US.
The hearing next week is a preliminary attempt to collect information regarding the taxation of Internet gambling should it become regulated in the US in the future. Reporting laws on money won will also be an issue addressed at the hearing.
The UIGEA was to take effect back in December, but several lawmakers lobbied the Department of Justice to delay the implementation of the UIGEA rules. The delay was granted for six months, and Rep. Frank had originally scheduled a hearing on his proposed legislation before the rules would take effect.
Now, the House Financial Committee that Frank Chairs has delayed the hearing on his legislation and some political analysts believe this was a calculated plan. If the UIGEA goes into effect, millions upon millions of online poker players are going to be outraged that they will be cut off from their online entertainment.
The theory exists that Frank and other Democratic leaders who are in favor of Internet gambling regulations will allow the UIGEA rules to take effect, hoping that the outrage will turn voters against Republican political hopefuls in the upcoming November election.
May 13, 2010
Posted By Larry Rutherford
Staff Editor, CasinoGamblingWeb.com
Submit News!