According to the Gaming Intelligence Group and other industry outlets, the Dutch Senate has approved a tax of 40% on “illegal online gaming” as well as people who gamble on “foreign online gaming sites.” It’s the latest news from an industry that has come under fire in countries such as the United States.

The Gaming Intelligence Group, a subscription-based website, stated, “At the core of yesterday’s debate was the moral question of whether taxing illegal activities implies an approval of [them]. The majority of the Senate was convinced by Secretary of State De Jager, who argued that taxation law does not differentiate between legal and illegal providers, and that both should be treated in a fiscally equal manner.”

Tariffs will be 40.85% for revenue generated online. In the United States, a bill proposed by Democratic Congressman Jim McDermott seeks to tax internet gambling operators, should internet gambling become legal. The bill, HR 2607, states, “Each licensee shall be required to pay to the Director during each 30-day period of operation a license fee of 2 percent of all funds deposited with or on behalf of the licensee by any person for the purpose of placing a bet during the preceding 30-day period.”

McDermott has also introduced HR 6501, which would allocate up to $40 billion during the ten years following the bill’s passage to those currently or formerly in foster care as well as employees in declining job sectors. The $40 billion figure is derived from a study conducted by PriceWaterhouseCoopers. HR 6501 currently has a pair of co-sponsors and was introduced on July 15th.

A bill proposed by Texas Congressman Pete Sessions has received ire from Nevada Congressmen Shelley Berkley and Jon Porter, who have both implied that internet gambling should be taxed at the state level, similar to how land-based casino gambling is structured. Berkley has authored a bill to study how to regulate internet gambling effectively as well as the effects of the Unlawful Internet Gambling Enforcement Act, which was passed in 2006. Porter introduced a similar bill during the previous Congress.

There are 75 seats total in the Dutch Senate. The Christian Democratic Appeal occupies 21 seats, the People’s Party for Freedom and Democracy holds 14, and the Labour Party also holds 14. Other parties that make up the Senate include the Socialist Party, Green Left, Christian Union, Democrats 66, Political Reformed Party, Party for the Animals, and the Independent Senate Group. The Senate meets in The Hague.

The Gaming Intelligence Group notes that the Dutch lawmaking body is still trying to discern a way to “encourage players to declare income from gambling proceeds, as well as how they can deal with gambling operators.” Those are two very important questions that will remain up in the air for now. Other legislative bodies that choose to allow gambling online will also have to ponder how to handle non-reporting of internet gambling revenue by players.

In the United States, a framework for licensed internet gambling has been proposed by Congressman Barney Frank (D-Mass).

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