Washington Democrat Jim McDermott has introduced the Internet Gambling Regulation and Tax Enforcement Act in Congress, an updated version of a bill introduced back in May. Hero to the industry Barney Frank (D-MA) is one of three co-sponsors to this bill.

McDermott's bill was official introduced on Thursday. Earl Blumenauer (D-OR) and John Larson (D-CT) are also co-sponsoring the legislation.

From Poker News Daily:

The new bill, like its predecessor, imposes a federal licensing fee of 2% of deposits. This tax cannot be “deducted from the amounts available as deposits to the person placing a bet.” According to McDermott’s officials and previous estimates from the Joint Committee on Taxation (JCT), up to $42 billion could be reaped from the 2% deposit tax along with corresponding corporate, wager, and income taxes. The figure is over a ten-year period.

HR 4976 introduces a 6% tax on deposits benefiting state and tribal governments, estimated to bring in $30 billion over ten years. Information released by McDermott’s office explains the benefits to states and tribal governments of taxing the burgeoning internet gambling industry: “At this level of taxation, internet gambling will still be quite profitable and states and tribes will have an easy way to participate in the taxing of internet gambling.” As it stands now, land-based gambling is also taxed at the state level, providing a windfall of cash each month to states like Nevada, New Jersey, and Indiana.

McDermott’s new internet gambling venture adds two more twists that HR 2268 lacked. The first ships 25% of funds raised through HR 4976 to the Transitional Assistance Trust Fund, which provides educational opportunities and job training for those currently or formerly in foster care.

The amount allocated to each state would depend on its population. In addition, 0.5% of funds raised through HR 4976 would be given to the American Heritage Block Grant Fund, which benefits historic preservation and the arts.