We Could Use the Money!

The passage of the unpopular Unlawful Internet Gambling Enforcement Act of 2006 sent the online bingo industry into a tailspin. The United States was the industry’s largest market and the loss of millions of players hit the industry hard. Stocks of online gaming companies plummeted on global stock exchanges. At present most in the internet bingo industry have focused their attention on European and Asian markets but that may be about to change.

US Representative Barney Frank plans to introduce a bill that would essentially eliminate the unpopular law and would tax and regulate internet gaming including internet bingo games. While it is presently unclear how much support Congressman Frank has, the fact that Democrats control the White House and both houses of Congress is seen as positive by the online bingo industry. Democrats control both the executive and legislative branches of the US government and are widely seen as more sympathetic to the online bingo industry.

A study conducted by PriceWaterhouseCoopers showed that the US is losing as much as $52 billion dollars a year in potential tax revenue. Given the state of the US economy and the ongoing recession it would seem that the US government would explore every means to generate new revenues. While there is some opposition to online gaming it is confined to a very tiny but vocal minority.

Obviously dealing with the global recession will be the top priority for the US congress but it is hard to understand why they have overlooked this source of much needed revenue.