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Gambling On the Web: Come On HR 2607!

Posted on 8.18.2007
Gambling on the Web is big business. I should actually say that online gambling in the U.S. used to be big business. Now those outside the States are reaping the rewards - those savvy blokes in the UK, don't you know.

So what's the status of gambling online today in the U.S.? While it's still illegal to place cash bets, there are two bills before Congress which might ease some of the restrictions.

HR 2607 amends the Internal Revenue Code to establish licensing requirements and fees for Internet gambling operators. The bill requires Internet gambling operators to pay to the Director of the Financial Crimes Enforcement Network during each 30-day period of operation a license fee of 2% of all bets and wagers placed during the preceding 30-day period. The bill also requires the Director to grant Internet gambling licenses to applicants who meet criteria set by the Director and are generally fit to engage in the business of Internet gambling. Requires such operators to adopt appropriate mechanisms to ensure the collection of all taxes and license fees relating to Internet gambling that become due to federal and state governments.

HR 2046 however amends federal law governing monetary transactions to establish an Internet Gambling Licensing Program administered and enforced by the Director of the Financial Crimes Enforcement Network (Director). The bill prescribes requirements for the licensing of Internet betting or wagering and that activities involving investment banking, payment and transaction processing, and financial transactions are shielded from liability if they are conducted in compliance with this Act and specified law. 2046 authorizes states, Indian tribes and sporting leagues to prohibit internet gambling licenses and subjects violators of this Act to criminal penalties.
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