On Wednesday, the House Ways and Means Committee will examine tax proposals related to internet gambling legislation as part of a hearing at 9:30am ET. Among those slated to appear as a witness is Congressman Barney Frank (D-MA), internet gambling and online poker’s main proponent on Capitol Hill. Frank is the author of HR 2267, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act. The bill establishes a full licensing and regulatory framework for the internet gambling industry in the United States. It has attracted 69 co-sponsors, but has not advanced out of committee.
Wednesday’s hearing will take place in Room 1100 of the Longworth House Office Building. Also appearing as a witness will be Ways and Means Committee member Jim McDermott (D-WA, pictured at left), whose HR 4976, the Internet Gambling Regulation and Tax Enforcement Act, may take center stage. HR 4976 raises money for states, Indian tribes, and the U.S. Government through internet gambling taxation. The bill allocates a portion of the funds raised to people currently or formerly in foster care as well as American heritage endeavors.
Online poker players have less than fond memories of Bob Goodlatte (R-VA), who was one of the driving forces behind the Unlawful Internet Gambling Enforcement Act (UIGEA) in 2006. Goodlatte, along with Jim Leach (R-IA) and Bill Frist (R-TN), successfully passed the anti-internet gambling legislation that year by attaching it to the SAFE Port Act. Goodlatte will take to the floor of the Ways and Means Committee hearing on Wednesday with what will likely be lively testimony.
Also appearing as part of Wednesday’s proceedings are two staffers from the Internal Revenue Service (IRS). Christopher Wagner is the Commissioner of the Small Business Self-Employed Division for the IRS and will head to the Longworth House Office Building. Joining him will be Rebecca Sparkman, Deputy Director for Operations for the IRS’ Criminal Investigation Division.
Rounding out Wednesday’s panel is Charles Steele, Deputy Director for the Financial Crimes Enforcement Network. Steele, Wagner, and Sparkman represent the United States Treasury, which was curiously absent from December’s House Financial Services Committee hearing on internet gambling legislation. Not taking part in Wednesday's hearing are any members of the internet gambling and banking communities, the two main groups affected by the UIGEA.
Skeptical of the hearing was Joe Brennan, Chairman of the Interactive Media Entertainment and Gaming Association (iMEGA). Brennan explained, “I’d feel better about the prospects if there were going to be a committee vote on the McDermott bill. While another public hearing gives the industry an opportunity to state the obvious, which is that the U.S. Government should regulate and tax the industry, the likely result is that the hearing will end without any next step forward.” The “next step” may be the June 1st UIGEA compliance deadline, which is just two weeks away.
The House Ways and Means Committee includes several familiar faces in the internet gambling world, including Shelley Berkley (D-NV) and John Larson (D-CT). Sandy Levin (D-MI) serves as its Chair, while Dave Camp (R-MI) is its Ranking Member. Topics that the Committee has tackled in hearings this month include customs, infrastructure banks, and unemployment insurance.
Poker players who manage to rise and shine by 9:30am ET can watch the hearing unfold on the official website of the House Ways and Means Committee via a live simulcast.