Internet Gambling Regulation Projected to Create Up to 32,000 New Jobs and $94 Billion in Expenditures Over Five Years
WASHINGTON, April 20 -- The Safe and Secure Internet Gambling Initiative today applauded a new study by H2 Gambling Capital, the leading supplier of data and market intelligence regarding the global gambling industry, that projects regulating all forms of Internet gambling in the United States would create close to 32,000 jobs over five years. Further, H2 concludes regulating all forms of Internet gambling would generate up to a total gross expenditure of $94 billion over five years and $57.5 billion in tax revenue from projected wagering activity, related job creation and growth of supporting businesses over the same period. Previously, it was projected that $72 billion over ten years would be collected from license fees and other applicable federal and state taxes in a regulated environment without sports betting.
"This analysis further reinforces the fact that a regulated environment will pay dividends throughout the economy," said Michael Waxman, spokesperson for the Safe and Secure Internet Gambling Initiative. "With unemployment nearing 10 percent, this study sends a clear message to policymakers that Internet gambling regulation is a common-sense way to immediately stimulate the economy, create close to 32,000 jobs and raise billions in much-needed new government revenues."
The announcement of this study coincides with movement in Congress to regulate Internet gambling, which is being led by House Committee on Financial Services Chairman Barney Frank (D-MA). Chairman Frank's legislation, the Internet Gambling Regulation, Consumer Protection and Enforcement Act of 2009 (H.R. 2267), has attracted a bipartisan group of more than 65 co-sponsors and is expected to be marked up in his committee in the coming weeks.
Internet gambling regulation is anticipated to benefit existing land-based casinos around the country. Access to this new market as a source of an alternative revenue stream for existing businesses is likely to have been one of the factors that led the American Gambling Association last month to announce support for Internet gambling regulation.
"We believe the significant job and revenue creation potential provides an immediate incentive for the Obama Administration and Congress to act quickly to regulate Internet gambling," added Waxman. "Leaving in place a failed prohibition should no longer be the government's misguided policy approach, leaving millions of Americans vulnerable as they continue to find a way to gamble online in a thriving underground marketplace."
Chairman Frank's legislation would allow for licensed gambling operators to accept bets and wagers, except for on sporting events, from individuals in the U.S. The legislation further mandates a number of significant consumer protections and reinforces the rights of each State and Tribal Government to determine whether to allow Internet gambling activity for people accessing the Internet within their jurisdiction, and to apply other restrictions on the activity as determined necessary.
A companion to Chairman Frank's bill, the Internet Gambling Regulation and Tax Enforcement Act of 2010 (H.R. 4976), introduced by Rep. Jim McDermott (D-WA), is projected to generate $42 billion in new federal government revenues and $30 billion in new state government revenues over 10 years. The primary source of the revenue would come from ensuring applicable taxes and license fees on regulated Internet gambling activities are collected.
Without sports betting, H2's model suggests a gross expenditure of $67 billion over five years that would generate $30.8 billion in tax revenue. Under this scenario, 25,470 new jobs would be created over five years.
About Safe and Secure Internet Gambling Initiative
The Safe and Secure Internet Gambling Initiative promotes the freedom of individuals to gamble online with the proper safeguards to protect consumers and ensure the integrity of financial transactions. For more information on the Initiative, please visit http://www.safeandsecureig.org. The Web site provides a means by which individuals can register support for regulated Internet gambling with their elected representatives.
Source: Safe and Secure Internet Gambling Initiative
CONTACT: Michael Waxman, +1-202-872-4860 ext. 238,
email@example.com, for Safe and Secure Internet Gambling Initiative