U.S. online gambling could bring billions to federal coffers

Legalizing online gambling in the United States could bring in as much as $52 billion in taxes over the next decade, according to results from a new study released today. According to the well-known accounting company PricewaterhouseCoopers, which conducted the online gambling study for UC Group, an online payment processing firm, concluded that if online gambling was made legal in the United States and was taxed - the benefits in tax money could well reach $52 billion over the next decade. PricewaterhouseCoopers new study also shows that online gambling has increased by some 22% in the United States, despite the recent attempt by the Congress to curb this form of entertainment by making it illegal for banks to process payments to and from online gambling websites.

The bill to block financial transactions with online gambling firms was passed in the wee hours of the last Congress session in 2006, while the Republicans still held to the majority. But House of Representatives Financial Services Committee Chairman Barney Frank has already announced plans to introduce a bill next month that would overturn the online gambling legislation and give the banks some breathing room during the financial crisis. Rep. Barney Frank was also one of the supporters of a bill that would effectively regulate online gambling in the United States and potentially result in billions in new taxes from this activity.

Published on 02/26/2009