The Great Debate: How To Tax Online Casinos?

24 May 2010

If nothing else, the debate over whether or not to regulating online gambling, has a new, somewhat hurried, question. That question has changed from “do we really want this?” to “how can we best do this and get the greatest windfall?”.

To get there from here is going to be testy. On Wednesday, the House Ways and Means Committee heard evidence, pro and con, on how to raise money from online gambling. True to Washington’s best virtues, virtual fights erupted all over the arena over just how best to tax a business model that is screaming “tax me, please, just let me offer my services”.

With the enforcement of UIGEA regulations ready to start on June 1, Washington has little time to play games with this issue. The pro regulate and tax online gaming side is gaining support everyday. With estimates on the tax revenue Washington can generate ranging from $42 billion to $72 billion dollars over ten years, one would think that they would set aside their differences and get this done.

While most admit that online gambling is here to stay, many still fight against. The land based casinos in Nevada and the off shore online operators need to get together and settle their differences too.

There are many different methods of taxing the online gambling.

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