Wyden Withdraws Controversial Proposal

In America, Senator Ron Wyden has withdrawn proposed legislation that would have seen Internet gambling revenues used by the Federal government to offset the costs of health care reform.

Introduced in the Senate Finance Committee last week, the amendment from the Oregon Democrat would have seen taxes generated by the implementation of the currently pending Internet Regulation, Consumer Protection And Enforcement Act used to increase low-income subsidies provided through the America's Healthy Future Act of 2009.

The healthcare debate in America has grown increasingly heated and the concept of taxing Internet gambling to pay for healthcare is unlikely to move forward despite support from senior Democrats in the House Of Representatives.

“The last thing Senator Wyden wants to do is make it more difficult to expand subsidies for working families by introducing a new contentious issue to the debate,” said Jennifer Hoelzer, Communications Director for the Senator.

“So, when he offers the amendment, he will do it with other funding mechanisms.”

The Internet Gambling Regulation, Consumer Protection And Enforcement Act was introduced in May by Massachusetts Democrat Barney Frank and would establish a framework permitting licensed gambling operators to accept wagers from individuals in the US. Frank is also Chairman for the House Committee On Financial Services and his proposed legislation would also mandate a number of significant consumer protections including safeguards against compulsive and underage gambling, money laundering, fraud and identify theft.

“Changing the laws regarding online gaming is a significant detour from healthcare, a detour that Senator Reid agrees is not appropriate at this time,” said Regan LaChapelle, spokesperson for Senate Majority Leader Harry Reid.

However, Wyden’s proposal has been praised by online gaming advocates along with some members of the House Of Representatives.

“Money is money,” said Representative Jim McDermott from Washington.

“If that’s the price we pay, that’s the price. I would consider adding it.”

A recent analysis by PricewaterhouseCoopers found that the US Federal government could collect up to $62.7 billion in tax over the next decade by regulating Internet gambling.

Additional provisions in Frank’s legislation reinforce the rights of each state to determine whether to allow Internet gambling for people under their jurisdiction while leaving room for other restrictions if deemed necessary.