As I mentioned yesterday, the concept of taxing internet gambling, and online transactions has been getting attention in Congress. It should come as no surprise that the House Ways & Means Committee announced a hearing on “Tax Proposals Related to Legislation to Legalize Internet Gambling.”
According to the announcement (via TaxProf), the Committee will discuss the current tax laws and reporting requirements applicable to wagering in the United States. The Committee will consider tax and other proposals in the Committee’s jurisdiction related to legislation pending in the Congress to license and regulate Internet gambling activities.
Additionally, the Joint Committee on Taxation has released Overview of Federal Tax Laws and Reporting Requirements Relating to Gambling in the United States:
The United States gambling industry generated more than $92 billion in revenue in 2007. This includes commercial casinos operating in 12 States, casinos operating on Indian tribal lands in 28 States, State lotteries operating in 42 States, and racetrack casinos operating in 12 States.
Part I provides a general overview of legal gambling operations in the United States, State taxation of gambling, and Internet gambling. The legal gambling market includes revenues from commercial casinos, Indian tribal casinos, State lotteries, pari-mutuel wagering, and other types of gambling which are discussed in this part.