A Democratic Congressman from the state of Washington has submitted a bill that would allow for the taxing of money won from online casino gambling. The bill is called the Investing in our Human Resources Act of 2008. the bill is seen as an attack on gambling which many people feel should be outlawed, which could have a $40 billion dollar upside. The new tax would be used for schools, job training for those who grew up in foster car and for those who are currently in an industry that is deemed as outdated or uncompetitive.
This is the second time Congressman James McDermott has attempted to pass a bill that would tax online gambling winnings. The first time was in 2007 when he brought the Internet Gambling Regulation and Tax Enforcement Act, or IGRTEA in front of congress. The bill was eventually deemed as unworkable and rejected. Attempts to crack down on the online payment systems that are currently being used to fund online gaming accounts have thus far been unsuccessful at doing anything except slightly reducing the amount of people gambling online.
Seeing this as an opportunity to become legitimate, members of several gambling organizations welcomed the Congressman's bill. Not only does the bill help raise money for important causes but it should make it easier to get the ban on internet gambling overturned if people are already being taxed on their online casino winnings. The Executive Director of the PPA has said he has not had time to properly review the proposed bill but likes what he sees in it so far.