Senators Harry Reid and Jon Kyl have recently proposed the “Internet Gambling Prohibition, Poker Consumer Protection and Strengthening UIGEA Act of 2012”, a new online gambling legislation that aims to make poker and off-track betting legal. This is the first time an online gambling legislation has been presented in the American senate for quite some time, and recent legal developments indicate that this bill could be successful.
Reid and Kyl’s bill aim to legalize online poker and off-track betting while prohibiting all other types of online casino activities. The bill also allows each state to launch their own online lottery websites. This would be a significant step forward for the American online gambling market.
For the first two years after the bill is passed, only land-based casinos will be allowed to launch online poker websites. After the initial period, other operators may be allowed to enter the market; however, the bill will prohibit online poker sites that continued to operate after the UIGEA was enacted. All sites will be taxed at 16%, with the government and local tribes receiving a share.