Legal Online Gambling Could Raise $42 Billion

Legalizing online gambling is a winner, according to its supporters, because it could raise badly needed money to help fund major government initiatives, including health care reform.

Although the numbers are sketchy and the taxation rate and process uncertain, some are saying that up to $42 million can be raised by online wagering.

A Joint Committee on Taxation analysis released last month by U.S. Rep. Jim McDermott (D-Washington) found that regulating internet gambling, as proposed in pending legislation introduced by McDermott and Rep. Barney Frank (D-Massachusetts), would generate nearly $42 billion over 10 years.

The analysis is based on the provision of a federal license for operators that would allow them to offer online gambling throughout the United States, while maintaining existing federal prohibitions on any form of sports betting.

While the leadership of the House hasn’t indicated whether they will support the bill, McDermott expects this report to be noted and appreciated. More than 50 congressmen have signed on to co-sponsor his bill already.