Posts Tagged ‘legal gambling’

US House Committee to analyze Tax proposals on Online Gambling

When it comes down to gambling in the US, one can be quite sure to encounter several hurdles legally and recently this theory has taken on a real form. The United States House Committee on Ways and Means has recently stated that they will be closely scrutinizing and analyzing the tax proposals in relation to online gambling.

The committee built with the purpose of having jurisdiction over taxation will be taking into account the impending tax and revenue prospective which stem from legalizing online gambling in the US. As of recent times it has been made quite clear to all parties involved in online gambling businesses that it is illegal to process online gambling funds as stated in the Unlawful Internet Gambling Enforcement Act (UIGEA). According to the next portion of the legislation, which will be introduced on the 1st of June, it clearly signifies that all the financial authority regarding online gambling must coincide with the regulations stated in UIGEA

It has been recommended by The Ways and Means Committee that the investigation will keep its focus on the current tax legislation in relation to gambling in the United States and will also be taking under consideration the pending gambling legislation (UIGEA) along with the proposals to approve of online Casinos and Poker rooms.

Allegedly stating, the committee is said to have accentuated on the potential advantages that can be derived from legalizing online gambling along with the information passed down by the Department of the Treasury’s research regarding electronic trade characteristics of internet gambling. House of Representatives member Shelley Berkley spoke out about the UIGEA in 2006 and has shown keen interest in legalizing online gambling along with several other committee members including politicians.

Douglas Rennick Pleas Guilty of Processing Illegal Payments

Canadian citizen Douglas Rennick was recently accused of processing betting payments for US residents who were playing at online casinos. Today, he pleaded guilty to the charge and by accepting the plea he avoided conspiracy and bank fraud charges.

Rennick admitted that he owned a company that spent two years transferring funds from a Cyprus bank to US acounts to pay off gaming losses. In a statement released by the federal authorities they said that Rennick had provided false statements to US financial institutions about the nature of the business he was conducting.

The US authorities seemed pleased when Rennick accepted the charge of processing payment for Internet poker rooms and online casinos. Prosecutors convinced Rennick to plea to a lesser crime of uncertain nature establishing a beachhead of sorts to anchor their contention Internet casino gambling and poker are illegal. Various US courts expressed their disagreement with the Justice Department, saying the Wire Act applies only to sports betting and leaves the question of online casinos unaddressed by federal law.

I can only say that things like this just make me angry, Rennick is facing a 6 to 12 months sentence for taking the deal. Much less than Mr. Phuong Quoc Truong who got condemned to 70 months in prison for a Huge Casino Gambling Scam.

In the process, however, Rennick has strengthen US prosecutors’ cases against the legalization and regulation of online gambling. His lawyers said that if he had stood trial and been convicted he could have faced a 40 years or more sentence.

We will keep you updated on how this turns out. In the meantime feel free to enjoy our great games at The Virtual Casino.

Bill HR 2267 for Online Gambling Regulation to Have a Hearing on May 19th

In March 2010, Representative Jim McDermott from Washington introduced a companion bill to HR 2267. The purpose of McDermott’s bill is to tax online gambling and proposes that the revenue is used to fund foster care programs. The bill is known as the Gambling Regulation and Tax Enforcement Act or HR 4976.

While we have seen how Barney Frank’s bill HR 2267 which proposes legalization and regulation of online gambling has been sitting in the shadows, the great news is that the Gambling Regulation and Tax Enforcement Act (HR 4976) is up for hearing on May 19th and 20th.

This bill only has 3 co-sponsors in the Democrat party, whereas Barney Frank’s has over 60 (not only Democrats) for HR 2267. One of the reasons as to why McDermott’s bill is being taken up ahead of HR 2267 is because it is in the House Ways and Means Committee whereas HR 2267 is in the House Financial Services Committee which has plenty other pressing matters due to the current economic climate. The hearing date for HR 2267 was postponed last month and there is no new date for it yet.

The members of the Ways and Means Committee are not very familiar with issues concerning online gambling which is why the Poker Players Alliance (PPA) has decided to step in and try to inform the committee members about issues at hand. “We’re spending a lot of time between now and then to talk to as many folks as we can on the committee,” said the executive director of the PPA, John Pappas.

It is expected that for McDermott’s bill legislators will have to ascertain how accurate the estimates floating around tax revenues from online gambling really are. They will also have to determine if this revenue would be constant in the long run so that it can be relied on to fund other programs. Related social issues like problem gambling and consumer protection will also probably come up for discussion.

We expect the best, the UIGEA implementation date is closer everyday and there is no chance for a second extension, this issue needs to be resolved as soon as possible.