The Internet Gambling Regulation and Tax Enforcement Act
20 June 2011
In a letter after our Constitution was established Ben Franklin wrote”… in this world nothing can be said to be certain, except death and taxes.” Well over 200 years later, this still seems to be the standard. The Internet Gambling Regulation and Tax Enforcement Act, H.R. 2230 was introduced Thursday that will require online gambling companies to withhold taxes from net winnings. Which is acceptable except online gambling is still illegal in the United States.
This bill will not even legalize online gambling; just provide a tax structure for it if it ever becomes legal. H.R. 2230, which was introduced by Reps. Jim McDermott (D-Wash.), John Campbell (R-Calif.), and Barney Frank (D-Mass.) also proposes a 2 percent federal tax on the Internet gambling providers, and gives the states an option of taxing these same companies at 6% as well as the player’s tax on the winnings.
The internet gambling companies, according to this bill, would be required to provide the names, address and tax ID numbers of all its U.S. players to the government. Other information they will have to provide is gross winnings, gross wagers and gross losses on each person for every calendar year, and the amount of tax withheld on these winnings as well as tell the government how much has been deposited and withdrawn during the calendar year.
Rep. Joe Barton (R-Texas) and the aforementioned John Campbell (R-Calif.), and Barney Frank (D-Mass.)all are considering proposing a bill that would legalize online gambling or in Barton’s case just online poker sometime this year. Having a tax structure in place may help so others in Congress could actually see the money that could be generated.
14 May 2010Canadian Man Pleads Guilty in U.S. Online Gambling Charge
Douglas Rennick, a Canadian man, has pleaded guilty to a count of processing offshore bets of U.S. citizens. Originally Rennick was looking at a charge of conspiracy and bank fraud. He had allegedly laundered $350 million dollars for overseas internet gambling companies. Rennick was indicted in August and on Tuesday entered a guilty plea to the one charge in New York Federal court. Part of the plea was forfeiting $17.1 million and a possible prison term of 6-12 months.Read full article
02 June 2010France to Award 30 Licenses for Online Gambling
Today the government of France approved a new online gambling bill. The bill passed the French parliament by a narrow 299-233 vote. The French will grant only 30 licenses to operate online casinos and poker rooms within its borders. Though it is now official and France says that licenses will be granted in time for the 2010 World Cup, not everyone is excited about the French market.Read full article
09 June 2010France Issues 11 Licenses For Online Gambling
France acknowledged that 11 companies have been granted license and have been registered to conduct online sports and horse race betting as well as online poker within France. According to Arjel president Jean-Francois Vilotte, the regulator of gaming in France, “There were 35 requests for licenses and we have retained 17 at this stage. None have been formally rejected.Read full article