Regulated online gambling industry would employ thousands and raise billions in U.S.

[CareyG]

Regulated online gambling industry would employ thousands and raise billions in U.S.​

20 April 2010
By Aaron Todd

Licensing and regulating the online gambling industry in the United States would create 32,000 jobs and generate $57.5 billion in tax revenues over the next five years, according to a study released by H2 Gambling Capital Tuesday.

The study bolsters the case of Rep. Barney Frank (D-Mass.), the Chairman of the House Financial Services Committee, whose Internet Gambling Regulation, Consumer Protection, and Enforcement Act (HR 2267) looks to establish a regulatory framework for Internet gambling in the United States.

"This study should provide further incentive for the Obama Administration and Congress to act quickly to regulate Internet gambling," said H2 Director Simon Holliday. "Furthermore, the current situation where United States players use offshore sites causes billions of dollars to leak out of the economy each year and leaves tens of thousands of players without any onshore regulatory protection."

H2's analysis is based on a scenario in which all 50 states choose to opt into the regulatory framework, and Sports Betting is allowed. Frank's bill would allow states and sports leagues to opt out if they so desired. If Sports Betting were excluded, H2 says that regulating the Internet gambling industry would create approximately 25,000 jobs and generate $30.8 billion in tax revenue over five years.

The study notes that U.S. gamblers currently bet $105 billion a year at offshore sites, and concludes that had the U.S. regulated the market rather than making the Unlawful Internet Gambling Enforcement Act law in 2006, 33,480 jobs would have been created and just under $5 billion would have been generated in taxes.

Source