On Wednesday, word broke in the online poker world that Congressman Jim McDermott (D-WA) introduced HR 6501, the Investing in our Human Resources Act. The bill was referred to the House Committee on Ways and Means as well as the Committee on Education and Labor. Two co-sponsors have already signed onto the bill, George Miller (D-CA) and John Larson (D-CT). The Act will provide up to $40 billion in assistance to those in foster care as well as those in declining job markets. McDermott has been unavailable for comment throughout the course of the week after the bill’s introduction. However, PokerNewsDaily.com met with Mike DeCesare, the main spokesperson for McDermott, to learn why the Congressman introduced this important piece of legislation.
It’s not very often that $40 billion in new funds is found. The internet gambling industry has been knocking at the door of Congress to be regulated, and more importantly taxed, ever since the Unlawful Internet Gambling Enforcement Act was passed in October of 2006. Some of the $40 billion “provides for expanded education opportunities for individuals who are, or were formerly, in foster care, including streamlining and coordinating education financing opportunities and providing counseling and assistance to such individuals for the purpose of ensuring completion of their academic goals,” according to the text of HR 6501.
The remainder is allocated to providing training and educational assistance to “individuals who are working in, or had worked in, declining sectors of the economy, as defined by the Secretary, and who want to pursue a new career in a sector of the economy with the potential for high wages and high growth, as defined by the Secretary.”
DeCesare comments on why these two particular groups were selected: “America has social needs that are not being met because we don’t have the revenue sources and we don’t want to increase the deficit. Regulating and taxing internet gambling will raise money that can help us meet those needs. The Congressman chairs the subcommittee that has jurisdiction over these and other vulnerable Americans.”
As PokerNewsDaily.com reported before, the bill’s two original co-sponsors are high-ranking Democratic officials. DeCesare discusses the importance of having Miller and Larson as supporters of HR 6501: “It shows that this is a proposal that’s being taken seriously. The issue should be debated in the House.” Other supporters of regulating the internet gambling industry include Barney Frank (D-MA), Chairman of the House Committee on Financial Services.
However, support has not been rosy throughout Capitol Hill. In fact, the Las Vegas Review-Journal cited comments by two Nevada lawmakers, Democrat Shelley Berkley and Republican John Porter, who spoke out against McDermott’s plan despite being from opposing political parties. Porter stated that McDermott’s bill is “a frivolous attack on the gaming community to pay for services that local governments, states and the federal government should already be providing.” Berkley commented that HR 6501 is “a classic case of putting the cart before the horse.” Berkley introduced the Internet Gambling Study Bill last June. However, it has yet to see the light of day on the House floor. Her bill calls for a one-year study to determine how best to regulate internet gambling in the United States.
The Investing in our Human Resources Act taxes internet gambling companies and then divides up the funds among the 50 United States, the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, American Samoa, and the Northern Mariana Islands. The idea that revenue is allocated on a national level may have been what has caused the latest outburst from Berkley and Porter, who are both from a state that derives a considerable amount of revenue from state-regulated casino gambling. With McDermott’s proposal, states are allocated revenue based on population. Nevada, the 36th largest state by population, would see $330 million from HR 6501 over the course of the decade. By contrast, California, the largest state in the U.S., would see $4.7 billion.
The 2008 Congressional session is quickly drawing to a close. In fact, Congress will be out of session during the entire month of August. Further adjournment will occur for the general elections in the United States. The bottom line is that it is unlikely that any internet gambling legislation may be passed, or even discussed, in 2008. However, industry experts agree that the timing may be right in early 2009.
