McDermott Bill Nears Hearing

May 12, 2010 | News Category: Gaming Law

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Although there does not seem to be much progress with Barney Frank’s online gambling bills, it looks like Jim McDermott’s online gambling bill may soon have a Congressional hearing.

Representative McDermott’s bill regarding the taxation of Internet gambling is expected to have a hearing in the House Ways and Means Committee. McDermott has outlined suggestions that a large portion of the revenue from online gambling should be used to fund foster care programs for those that are currently in the foster care system, and for those that have gone through the system.

It looks as if the bill will be heard later this month, around the 19th or 20th May, although no definite date has yet been set. Frank’s online gambling bill, HR 2267, which was delayed due to ‘scheduling conflicts’, has not yet been rescheduled.

As far as the companion bill to HR 2267, which deals with the UIGEA, is concerned, it looks as if it will not be dealt with before June 1st. The June 1st deadline for the UIGEA (Unlawful Internet Gambling Enforcement Act) implementation is just around the corner, and chances are that this bill will not be having a hearing before that time, and even if it does, it is likely to be too close to the June 1st deadline to once again delay the implementation of the UIGEA.

McDermott’s bill, the Gambling Regulation and Tax Enforcement Act, numbered HR 4976, focuses not on whether or not to legalize online gambling, but on what the tax revenues can be used for, should it be legalized.

John Pappas, the Executive Director of the Poker Players Alliance, said of the hearing: “I think it's mostly going to focus on how much money can be raised from this and if it's reliable revenue the government can use to fund programs over the next 20 years.” Pappas expects that the major focus of the talks will be on realistically determining the amount of funds that would most likely be generated, and also discussions regarding the prevention of money laundering, and the prevention of gambling problems.

Although HR 4976 was only introduced in March of this year, the reason that it will most likely be heard so much faster than the Barney Frank online gambling bill is because it needs to be dealt with by a different Congressional Committee. HR 4976 needs to be dealt with by the House Ways and Means Committee, which is not dealing with other pressing issues, as is the committee that needs to have a hearing for HR 2267. The House Financial Services Committee constantly has other pressing issues that cannot be delayed, which simply keep pushing the Frank online gambling bill further down in the list.