The Online Gambling Companion Bill is Back

July 01, 2011 | News Category: Gaming Law

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In March this year, Barney Frank and John Campbell reintroduced the online gambling that had not progressed as far as it should have while Barney Frank was the chair of the House Financial Services Committee. The new bill is known as the Internet Gambling Regulation, Consumer Protection, and Enforcement Act (HR 1174).

When the online gambling and anti-UIGEA (Unlawful Internet Gambling Enforcement Act) bill was introduced in the past, Representative Jim McDermott, D-Wash., had also introduced a bill that was considered to be the companion bill for the Barney Frank online gambling bill. The companion bill set out a plan for online gambling taxation after it would be legalized. This means that this bill was not a standalone bill, but one that would be needed if/when the online gambling bill passed into law.

This month, in June 2011, Representative McDermott has also reintroduced his companion bill regarding online gambling taxation in the United States. Although the bill, HR 2230 is not exactly the same as the previous bill, much of it is the same, with a few additional points added in. Some of the additional points help to deal with some of the questions that have been raised in connection with the online gambling bill.

The new online gambling bill is called the Internet Gambling Regulation and Tax Enforcement Act of 2011 (HR 2230). Representatives Frank and Campbell have co-sponsored this online gambling taxation bill. The bill was passed by the House Financial Services Committee last year, and is likely to pass again.

The bill explains that taxes and fees would be collected from online gambling wagers, and even though the bill in and of itself does not legalize online gambling, it does require that Internet casino operators hold onto the portion of online gambling winnings that should be paid in tax. The online gambling sites would also have to supply information to the US federal government on gross wagers, gross losses, and gross winnings to of each of their online casino players. The online casinos and other online gambling sites would also have to provide names, tax identification numbers, and addresses of those players who frequent their online casinos.

In order to monitor players, to see signs of possible gambling addiction or underage gambling, the Treasury Department would also be given information regarding gross wagers, gross losses, and gross winnings every year, as well as the size of deposits and withdrawals from the online gambling site, and the taxes that have been withheld from each player's winnings.