Internet poker could net US billions in tax

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INTERNET POKER COULD NET US BILLIONS IN TAX: STUDY
[SOURCE: Reuters]
Regulating Internet poker could bring the U.S. government some $3.3 billion in taxes annually, according to a study to be released today, ahead of an expected debate over legislation to ban online gambling. Income taxes on winnings from Internet poker alone -- which is estimated to have attracted $60 billion in wagers worldwide in 2005 -- could amount to $2.5 billion each year, according to the study commissioned by the Poker Players Alliance, a group calling for the regulation of online gambling. "The majority of the revenue that's generated would be from reporting of poker winnings," said Michael Bolcerek, president of the group. The study also said that a 1 percent user fee on online poker transactions would generate another $800 million to $1 billion in revenue per year for the U.S. government. The U.S. Justice Department says a 1961 law that forbids interstate telephone betting also applies to the Internet, making it illegal for the industry to do business in the country.
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