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.

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.)

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