Congress Moves to Dedicate $40 Billion in Internet Gambling Revenue for Job Training...

Congress Moves to Dedicate $40 Billion in Internet Gambling Revenue for Job
Training and Foster Care Programs

Legislation's introduction shows continued support for Internet gambling
regulation

WASHINGTON, July 16 /PRNewswire-USNewswire/ -- Rep. Jim McDermott (D-Wash.)
introduced legislation yesterday that directs a potential $40 billion over the
next 10 years to be spent on job training for those in the declining sectors
of the economy and educational assistance for foster care youth. The
legislation, Investing in our Human Resources Act of 2008 (H.R. 6501), would
be funded through new revenue generated by regulated Internet gambling
activities.

"We have an ideal opportunity to invest billions of dollars in American
workers and our struggling economy without increasing the federal deficit,"
said Rep. McDermott in speaking about the Investing in our Human Resources Act
(IHRA). "IHRA would utilize a funding stream that would become available
should Congress decide to legalize and regulate Internet gambling, which would
protect consumers and collect tax revenue that is currently offshore."

A provision in the legislation also encourages responsible Internet gambling
behavior and an awareness of unsafe practices, something which has been
praised by problem gambling advocates.

"I believe that the McDermott bill could be a positive step to help raise
awareness about the dangers of unsafe gambling practices and the availability
of addiction treatment," stated the Executive Director of the National Council
on Problem Gambling Keith Whyte.

In a sign that the legislation has support from key members of the Democratic
Congressional leadership, Reps. George Miller (D-Calif.) and John B. Larson
(D-Conn.) are original co-sponsors of the legislation. Rep. Miller is a
member of the Democratic Leadership and chairman of the House Democratic
Policy Committee. Rep. Larson serves as vice chair of the Democratic Caucus
and assists in organizing and running the Democratic Caucus.

Introduction of IHRA demonstrates the growing support in Congress to regulate
Internet gambling.

"It is encouraging that Congress is seeking to regulate Internet gambling and
put the billions in new revenue to good use," said Jeffrey Sandman, spokesman
for the Safe and Secure Internet Gambling Initiative. "We need to change the
current path, where the prohibition of Internet gambling allows for billions
of dollars to be lost in an underground, uncontrolled marketplace ripe for
criminal exploitation."

Revenues from regulated Internet gambling are estimated to be between $8.7
billion and $42.8 billion over 10 years, according to a recent tax revenue
analysis prepared by PricewaterhouseCoopers. Through IHRA, these revenues
would be allocated annually to each state through a new Transitional
Assistance Trust Fund. A state would be entitled to receive its allotment
based on its percentage of the total population.

To generate additional support for IHRA, Rep. McDermott circulated a letter to
all members of Congress. It includes a chart indicating projected allocations
of funding by state. A copy of the letter is available at
www.safeandsecureig.org/media/mcdermottdearcolleague-IHRA.pdf.

Previously, a framework to regulate and ensure the collection of taxes on
Internet gambling activities was proposed in companion pieces of legislation
introduced by Reps. McDermott and Barney Frank (D-Mass.)

The Internet Gambling Regulation and Enforcement Act (H.R. 2046), introduced
by Rep. Frank in April 2007, establishes an enforcement framework for licensed
gambling operators to accept bets and wagers from individuals in the U.S. It
would include a number of built-in consumer protections, including safeguards
against compulsive and underage gambling, money laundering, fraud and identity
theft. The legislation would also reinforce the rights of States to control
what, if any, level of Internet gambling is permissible within their borders,
including the ability to apply additional taxes, and to ensure that
appropriate consumer protections and limitations were in place.

Rep. McDermott's earlier bill, the Internet Gambling Regulation and Tax
Enforcement Act (H.R. 5523), would ensure the collection of taxes on regulated
Internet gambling activities. A revised version of the bill, introduced in
March 2008, includes an enhanced reporting mechanism under which licensed
gambling operators are required to provide each customer an annual statement
of winnings and losses. It also establishes a two percent licensing fee that
is paid by the operator, not the individual gambler. The licensing fee is
designed to equalize the costs of operation in providing gambling services
online, as opposed to brick-and-mortar casinos providing gambling services
in-person, and would only be applied to online operators.

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 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

Michael Waxman, +1-202-872-0010, +1-202-872-4860, info@safeandsecureig.org