A Joint Committee on Taxation report released today by Rep. Jim McDermott (D-WA) found that regulating Internet gambling would generate roughly $42 billion over 10 years.
The report is based on the requirement of a federal license for operators that would allow them to offer online gambling throughout the United States, while keeping the federal prohibition on any form of sports betting.
"This analysis further reinforces the fact that a regulated environment will generate billions in new revenue to offset the costs of health care reform or other vital government programs," said Michael Waxman, spokesperson for the Safe and Secure Internet Gambling Initiative.
"With the completed analysis, and support for Internet gambling regulation growing daily, it's only a matter of time before Congress acts and begins allocating the billions in new revenue sitting on the table to one program or another."
Representative Barney Frank (D-MA) has introduced legislation that would legalize Internet gambling and McDermott has a companion bill that would collect tax revenues on online gambling.
"We believe this tax revenue analysis will encourage immediate discussions and consideration of pending legislation to regulate Internet gambling," said Waxman.
"With everyone acknowledging that attempts to prohibit the activity have failed, this provides even more incentive for Congress to act."
Currently the amount of revenue that remains uncollected while Americans gamble online is more than $100 billion annually.