United States are about to lift prohibition on Online Gambling firms
Posted on May 20, 2010 by John Trevors for Luckyroom.com
According to “The Independent – independent.co.uk” United States are discussing the possibility to lift the restrictions of internet gambling. It is the first time since the Unlawful Internet Gambling Enforcement Act of 2006 passed that there is serious debate regarding this issue. The above mentioned law passed in an effort of the US government to minimize money laundry from the Web as they were not able to track down the true receivers of the wagers placed by online poker, online bingo or casino players. Back then, many opinions expressed in favor of the online banning act, including that the money from the US residents was used to fund terrorist attacks within US soil.
Almost four years passed since the law enforcement and now distinct members of the political world started a debate on Senate’s Ways and Means Committee as an effort to reverse the 2006 ban. Congressmen Barney Frank and Jim McDermott are leading the campaign which is based on three main points.
The first one is by permitting online gambling, the federal government and the states can receive over $42 billion by taxation within a 10 years period. The companies will have to pay 2% tax to the federal government and 6% to the state that issued the gambling license. Additionally, taxes will be applied to the players’ winnings who; as Jim McDermott stated: “We are sending a multi-billion dollar industry offshore and underground. As a result, we are making tax criminals of Americans who can’t declare their online winnings to the IRS”.
The second point is the creation of more than 32,000 jobs to the legitimate onshore companies that are involved in internet gambling industry without counting the job openings to the states and to the federal government that will handle issue and monitor the online gambling applications.
The third point is that according to the statistics, the 2006 ban failed to provide a working solution regarding the destination of the funds. According to research firm H2 Gambling Capital, the scale of offshore gambling in the US is right back where it was in 2006, after falling by a third in the immediate wake of the ban, to an expected $6bn this year.
Many online gaming companies that were shut out of the US market eye the opportunity of a come back. London based PartyGaming and 888.com, two of the biggest companies in the world in the area of online gambling have already mobilized towards that opportunity. PartyGaming is in negotiations with brick and mortar casino operators in the US about possible joint ventures, should the laws be relaxed at a federal level or by individual states, and 888.com, too, is “staying close” to the American casino chain Harrah’s.
Sources of information for the following were provided by Wikipedia:
PartyGaming: PartyGaming Plc (LSE: PRTY) is an online gambling company, well known for its online poker room PartyPoker.com and its online casino PartyCasino.com. The company is headquartered in Gibraltar Europe and is quoted on the London Stock Exchange. PartyGaming Plc was founded in 1997 with the launch of Starluck Casino from a successful partnership of Ruth Parasol with Anurag Dikshit. Prior to the introduction of the Unlawful Internet Gambling Act of 2006 which forced stock listed or stock listed to be online gaming companies from accepting wagers from US tax payers PartyGaming Plc held the world’s largest online poker brand (based on ring game revenue and number of players). Its market share has diminished since then but it remains the fourth largest online poker room in the world and the largest European stand alone online poker room. Read more about Party Gaming on Wikipedia.
888.com: 888 Holdings plc (LSE: 888) is a online gaming company which operates a number of high-profile gambling websites including the popular 888 Casino On Net and 888 Ladies Bingo which is popular in the UK for its services on the web to bingo online. The company was founded in 1997 and is a constituent of the FTSE SmallCap Index. It is run from Israel based in Gibraltar and its is London Stock Exchange listed. It has an operating subsidiary, Cassava Enterprises, which is incorporated and operates under the laws of Gibraltar. Brothers Avi and Aaron Shaked owned approximately fifty percent of the parent-company through family trusts. Another pair of brothers, Shay and Ron Ben-Yitzhak, control approximately eleven percent through a family trust. Read more about 888 on Wikipedia.
Barney Frank: Barney Frank (born March 31, 1940) is the United States House Representative for Massachusetts’s 4th congressional district since 1981. He is a member of the Democratic Party. In 1982, he won his first full term, and he has been re-elected ever since by wide margins. In 1987, he became the second openly gay member of the House of Representatives, and he has become one of the most prominent LGBT politicians in the United States. Frank became the chairman of the House Financial Services Committee in 2007 after the Democratic Party won a majority in the House. The committee oversees the entire financial services industry, which includes the securities, insurance, banking, and housing industries. Read More about Barney Frank on Wikipedia.
Jim McDermott: James Adelbert “Jim” McDermott (born December 28, 1936) is the current U.S. Representative for Washington’s 7th Congressional District. The 7th District includes most of Seattle and Vashon Island, and portions of Shoreline, Lake Forest Park, Tukwila, SeaTac, and Burien. McDermott is a member of the Democratic Party. He serves on the House Ways and Means Committee and is a member of the House Progressive Caucus. He has consistently received strong support from his district, taking 84% of the popular vote in 2008, easily winning against Republican challenger Steve Beren. Read More about Jim Mcdermott on Wikipedia.
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