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Congress may roll dice, legalize Net gambling

The U.S. House of Representatives committee charged with writing tax laws will hold a hearing on Wednesday morning to consider a trio of legalization-and-taxation proposals.

The U.S. House of Representatives committee charged with writing tax laws will hold a hearing on Wednesday morning to consider a trio of legalization-and-taxation proposals.

Rep. Barney Frank (D-Mass.) is the author of H.R. 2267, which would allow Internet casinos to obtain licenses from and be regulated by the federal government. A related bill, H.R. 2268, would impose a 2 percent federal "Internet gambling fee" and, just in case, require that the IRS be notified of taxpayers' winnings. The third, H.R. 4976, says state governments may collect a 6 percent gambling tax.

The proposals would raise an extra $58 billion in tax revenue by 2015 and create about 32,000 jobs, estimates a report released last month by H2 Gambling Capital, a gaming consultancy. (H2 was assuming that all forms of Internet gambling, including sports betting, would be permitted.)

For more on this story, read Congress may roll dice, legalize Net gambling on CNET News.