Can the Frank bill pass before they figure out how to tax online gambling?
It’s hard to see the full House voting to license and regulate online gambling before the taxation part is settled. The political argument being advanced by many of the people supporting this bill is that in a time of enormous deficits and tough economic times, ignoring a tax stream like online gambling is irresponsible. And when you combine the tax revenue with protecting consumers, licensing online gambling is a no-brainer. This is a powerful political argument. But it’s an argument that only works if the tax part of this equation is figured out. Until Rep. Jim McDermott’s Internet Gambling Regulation and Tax Enforcement act is ready, it will be hard for the House to authorize the licensing of online gambling. Does that mean the Frank bill won’t pass the House this year? That’s the most likely scenario. The two biggest factors working against passage are the tax bill and the calendar. The House is set to go on its August recess shortly. And they won’t return to Washington until the b
