Legal Internet Gambling Tax Boon or Social Nightmare for the US?

Casino BankingLegal Internet Gambling: Tax Boon or Social Nightmare for the US?

Gambling in the United States is big business, with commercial casinos raking in $34.6 billion in 2010. In the most up-to-date report, Native American casinos brought in $26.4 billion in 2009. Huge numbers compared to the estimated $11.9 billion in revenue from online gambling in 2004.

Illegal in the United States

And that’s only an estimate. With online gambling being illegal in the United States because of the 1961 Wire Act, there’s no sure way to know how much is brought in. That may change if Congress has its way. California Representative John Campbell introduced the Internet Gambling Regulation, Consumer Protection, and Enforcement Act in March. The bill, cosponsored by 29 other representatives, would give the Secretary of the Treasury the ability to regulate Internet gambling. By making Internet gambling legal and taxing it, a report issued by the Joint Committee on Taxation estimates that it will bring in nearly $42 billion for the federal government over a ten-year period. State and local governments could see as much as $30 billion in that same time period.

Gambling Online

However, the statistics relating to Internet gambling addictions are disturbing. A 2008 study conducted by Jessica McBride and Jeffrey Derevensky compared social gamblers, those who go to casinos, and online gambles. The study found that 96 percent of online gamblers gambled from home. Problem gamblers were also more likely to gamble from school or a cell phone. Most (93 percent) gambled on line because it was convenient and 29 percent choose to gamble online because it is easier to hide their gambling habits from others. The study also found that online gamblers were more apt to gamble under the influence of alcohol (45 percent), marijuana or hash (8.8 percent) or other illicit drugs (3.8 percent).

July 16, 2011 by : posted in Casino Banking No Comments