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This page contains a single entry from the blog posted on September 22, 2009 4:46 AM. The previous post in this blog was House of cards getting new wing. The next post in this blog is All you need is bucks. Many more can be found on the main index page or by looking through the archives.

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Tuesday, September 22, 2009

Wyden: Tax online gambling to pay for health care

One more way to get government hooked on gambling revenue. How much appetite for gambling does our society have? Won't this proposal divert money from the folks who are already feeding at the legalized gambling trough, like the state "lottery" pushers?

Comments (13)

I thought online gambling was illegal?

Another Wyden idea that seems contrary to a wise idea............

A little light reading for the senator:

http://www.law.indiana.edu/fclj/pubs/v54/no1/Hammer.pdf

And as far as legality - 5 states prohibit online gambling & there is some question as to whether the feds can insert themselves into this matter (kind of like marriage was supposed to be a states rights perogative at one point).

http://www.law.duke.edu/journals/dltr/articles/2003dltr0016.html

http://en.wikipedia.org/wiki/Online_gambling#United_States

Are you really expecting politicians of any stripe to have new ideas? Please, they get their talking points from the pressure groups and beat that to death.

God forbid they should have an original thought on anything besides creative ways to tax us.

Great idea. A tax paid by others. Why didn't I think of it?

I thought online gambling was illegal?

Read the link. The idea would be to legalize it.

there is some question as to whether the feds can insert themselves into this matter

The commerce clause of the U.S. Constitution, and the supremacy clause, should cover it.

I'm imagining a conversation involving time travel to the past:

Thomas Jefferson: So, tell me--how goes our government in the future?

Me: It's amazing. Our state government runs a gambling operation to help pay for schools and other necessities.

Jefferson:...I...the *government* runs a gambling house? Surely that's a joke!

Me: Oh, not just a gambling house. People around the country can gamble everywhere, just by buying a ticket from the government. Some estimate billions of dollars are lost every year gambling at the government-run games.

Jefferson: It's unbelievable. What kind of leaders allowed such a shameful compromise to occur? And why?

Me: Oh, it was widely praised. Millions of dollars are garnered every year. Unfortunately, thousands of citizens are poorer as a result, and thousands are in rehabilitation programs for addiction. And foreclosure, and other problems.

Jefferson: Preposterous! The government will shut the games down then?

Me: Oh no. They're expanding it. It's a major source of revenue. One senator from our state has even proposed using gambling proceeds won from citizens to pay for doctor's services.

Jefferson: So, the government runs a gambling game, invites citizens to play--knowing that nearly all will lose--so it can pay for services to citizens who lost the money?

Me: Close enough.

Jefferson: Good lord. Is this what the future regards as freedom?

Me: Mr. Jefferson, in the future, you'd likely be arrested for hating America. Is that a copy of the Q'uran I see on your bookshelf?

Jefferson: Why yes, it was a gift. It's quite a text. I have a collection.

Me: Why do you support terrorism, Mr. Jefferson? Do you hate America?

Alcohol, drugs, and many other types of contributing causes (or excuses) for crime are collected in police reports. This data is presumably used to track causal factors so local, state, and federal LE agencies can address the problem accordingly.

I have heard of no law enforcement agencies that track how gambling might be influencing crime, so it may be much worse than folks realize.

Theft? yes. especially from the workplace

Robbery? some.

Forgery? bad checks of course

Domestic Abuse? family fights will occur every time one spends the monthly paycheck on the video poker machine.

Increased Drug and Alcohol abuse? Self medicating to get rid of the terrible feeling after throwing all that money down the tubes

Something seems really dirty to me when we try to support ourselves on the weaknesses of others. One perpetuates the other, leading to more dependency on the
failings of our neighbors. That can't be right, can it?


The SAFE Port Act of 2006 included the UIGEA (Unlawful Internet Gambling Enforcement Act) which was added on in committee. It prohibits the transfer of funds from banks to online gambling sites, which does put a bit of a crimp in the ability to conduct online gambling.

Per an article earlier this year in The New Yorker, though, sites like Full Tilt Poker, whose board chairman is former math student and professional poker player Chris "Jesus" Ferguson, have essentially ignored the Act and continued to operate, so long as banks continue to transfer money to their offshore operations. While a number of publicly-traded sites that once conducted online cash games no longer do so, there are still a number of them operating, waiting to see who gets challenged in court first.

Why be content to merely _tax_ it? Doing that only has the effect of even further discouraging the very activity you've now decided you want to piggy-back onto and make money off of. Why not instead have Uncle Sugar create, promote, and run the one and only _legal_ gambling site, the only online casino authorized to receive funds from banks, the biggest and best site out there, offering all manner of games imaginable, and with every single dollar realized dedicated to paying for health care? That's the best bang for the buck. Then after they get that in place they can set up a true national lottery, with lotto jackpots dwarfing anything now going on.

The commerce clause of the U.S. Constitution, and the supremacy clause, should cover it.

Not to be argumentative, but commerce generally implies an exchange of value for value (goods for money, etc.). So I am having a hard time pondering how gambling could be confused with commerce.

And the constitution is routinely ignored right and left by the Federal government but......

There are many scholarly writings about the commerce clause. You should read one.

Cmon , Senator , tax the obvious.
Big Macs and Pepsi ! We know they cause poor health and create a cost burden on the health care system.

It's only a matter of time until the State's reach exceeds its grasp re. traditional gambling and they rationalize legalizing and taxing prostitution.

After all, they can say it's for "the kids."


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