Home >> News >> Study: Online Gambling Regulation Good for ...

Study: Online Gambling Regulation Good for Ecomony

A new study projected that thousands of jobs and billions of dollars in tax revenue would be created if legislation were passed to legalize and regulate online gambling and poker in the United States.

The study by H2 Gambling Capital, which is “the leading supplier of data and consultancy regarding the gambling industry” according to its Web site, comes as legislation is moving through congress to regulate and tax the online gaming industry.

The study said that about 32,000 jobs would be created over a five-year period if all forms of online gambling and poker were regulated in the United States. The study also said that about $57.5 billion in tax revenue would be created if legislation were passed.

The current U.S. unemployment rate is 9.7 percent. Recent statistics from the government show that 6.5 million workers have been unemployed for more than 26 weeks.

According to Michael Waxman, spokesperson for an online gambling interest group, the Safe and Secure Internet Gambling Initiative:

This analysis further reinforces the fact that a regulated environment will pay dividends throughout the economy “With unemployment nearing 10 percent, this study sends a clear message to policymakers that Internet gambling regulation is a common-sense way to immediately stimulate the economy … We believe the significant job and revenue creation potential provides an immediate incentive for the Obama Administration and Congress to act quickly to regulate Internet gambling. Leaving in place a failed prohibition should no longer be the government’s misguided policy approach, leaving millions of Americans vulnerable as they continue to find a way to gamble online in a thriving underground marketplace.

The Internet Gambling Regulation, Consumer Protection and Enforcement Act of 2009 (H.R. 2267), introduced by Rep. Barney Frank (D-Mass.), is currently in the House of Representatives’ Committee on Financial Services. Frank chairs the committee. A planned hearing on that legislation scheduled for last week was postponed. No makeup date has been set. That bill has more than 60 co-sponsors and has enough support that it may get to a vote in Congress.

A companion bill, the Internet Gambling Regulation and Tax Enforcement Act (HR 4976), introduced by Rep. Jim McDermott (D-Wash.) would tax online poker and gambling. Information McDermott’s office had released estimated that revenues would be about $72 billion over 10 years. The H2 figures above take into account sports betting being included with other types of online gambling. Without sports betting, H2’s study predicts $30.8 billion in tax revenues and more than 25,000 new jobs over five years.

Get your daily dose of poker news with the PTP Hit and Run.

Exclusive Freerolls and up to 45% cashback at Carbon Poker >>>