Study: US egaming laws would create 32,000 jobs, $57bn tax
US internet gaming regulation would create close to 32,000 jobs and up to US$57.5bn in tax revenue over five years, new research has shown.
US INTERNET gaming regulation would create close to 32,000 jobs and up to US$57.5bn in tax revenue over five years, new research has shown.
The new study by gambling data business H2 Gambling Capital bases its figures on the regulation of all forms of internet gambling, which H2 projects would generate a total gross expenditure of US$94bn and US$57bn in tax revenues from the related job creation and supporting business over five years.
H2 director Simon Holliday said: “The regulation of Internet gaming provides a unique opportunity to legislators in the current economic climate, namely the opportunity to instantaneously create jobs and support economic growth while protecting consumers and reducing the budget deficit.
Holliday added that he hoped the study would provide further incentive for the Obama administration to move quickly to regulate egaming.
“The current situation where US players use offshore sites causes billions of dollars to leak out of the economy each year and leaves tens of thousands of players without any onshore regulatory protection,” he said.
The House Financial Services Committee is currently considering internet gambling bills proposed by its chairman, Congressman Barney Frank.
Frank’s HR 2267, Internet Gambling Regulation, Consumer Protection, and Enforcement Act would provide a licensing and regulating framework for egaming in the US, while its partner bill, HR 2266, would delay compliance with regulations under the Unlawful Internet Gambling Enforcement Act 2006 by a year.
A companion bill introduced by Representative Jim McDermott, the Internet Gambling Regulation and Tax Enforcement Act of 2010 (HR 4976), would require licensed operators to pay applicable licence fees and taxes.
Frank’s bills do not concern sports betting, the federal ban on which is currently subject to constitutional challenge from the state of New Jersey. However even with sports betting exempted from the model, H2 suggests a gross expenditure of US$67bn over five years would generate US$30.8bn in tax revenue and 25,470 new jobs.
The hearing for Frank’s bills scheduled for last Friday 16 April was postponed the previous Monday, however. No replacement date has yet been announced.