Rep. Jim McDermott (D-Wash.) introduced legislation that points to a potential $40 billion over the next 10 years to be invested on job training for the most susceptible sectors of the economy and educational support for foster care youth. The legislation, Investing in our Human Resources Act of 2008 (H.R. 6501), would be funded using the income generated by imposing a tax on online gambling activities.

"We have an ideal opportunity to invest billions of dollars in American workers and our struggling economy without increasing the federal deficit. IHRA would utilize a funding stream that would become available should Congress decide to legalize and regulate Internet gambling, which would protect consumers and collect tax revenue that is currently offshore." said Rep. McDermott in speaking about the Investing in our Human Resources Act (IHRA).

Introduction of IHRA reveals the growing support in Congress to regulate and tax Internet gambling activities, including online sportsbetting, online casinos and online poker rooms.

The legislation has gained support from key members of the Democratic Congressional leadership, including Reps. George Miller (D-Calif.) and John B. Larson (D-Conn.) who are currently co-sponsoring the bill. Rep. Miller is a member of the Democratic Leadership and chairman of the House Democratic Policy Committee. Rep. Larson serves as vice chair of the Democratic Caucus and assists in organizing and running the Democratic Caucus.

According to an analysis revealed by PricewaterhouseCoopers, regulating and taxing Internet gambling can generate an estimated that could reach from $8.7 billion to $42.8 billion only in the first decade. McDermott’s bill proposes to allocate these revenues every year to each state through a new Transitional Assistance Trust Fund. A state would be entitled to receive its allowance based on its total population figures.

"It is encouraging that Congress is seeking to regulate Internet gambling and put the billions in new revenue to good use. We need to change the current path, where the prohibition of Internet gambling allows for billions of dollars to be lost in an underground, uncontrolled marketplace ripe for criminal exploitation." said Jeffrey Sandman, spokesman for the Safe and Secure Internet Gambling Initiative.

Previously, a project to control and tax Internet gambling activities was proposed along with two bills introduced by Reps. McDermott and Barney Frank (D-Mass.)

Rep. Frank introduced t he Internet Gambling Regulation and Enforcement Act (H.R. 2046T) in April 2007, and established an enforcement framework for licensed gambling operators to accept bets and wagers from individuals in the U.S. It would include a number of consumer protections such as safeguards to prevent compulsive and underage gambling, money laundering and fraud and identity theft. The legislation would also reinforce the rights of each State to decide if the Internet gambling activities are admissible within their borders, and the ability to apply additional taxes if they are required.

Rep. McDermott's bill, the Internet Gambling Regulation and Tax Enforcement Act (H.R. 5523), would guarantee the collection of taxes on regulated Internet gambling businesses. The bill includes a reporting mechanism that requires gambling operators to provide all customers with annual statements of winnings and losses. It also establishes a two percent licensing fee charged to the operator and not to the gambler.

DoylesRoom.com