Iowa's Rep. Leach Seeks to Ban iPoker: Hypocrite?

The State of the State was published in May 2006 by the American Gaming Association (AGA). The American Gaming Association (AGA) is the national trade association for the commercial casino industry. This is a survey includes comprehensive economic impact data on the U.S. commercial casino industry. The industry in 2005 generated more than $30 billion in gross gaming revenues for the first time ever.
Two congressional bills aim at curtailing Internet Gambling, including iPoker, HR 4777 and HR 4411. HR 4777 provides criminal penalties including five year imprisonment for accepting Internet bets. Leach provide the substitute bill for HR 4411, which sets up a system to analyze every Internet or payment system transaction AND then to BLOCK any going to an offshore gambling site. This is a horrendous invasion of every American’s privacy.
Leach’s Iowa is a major gambling state with 13 commercial casinos (including three racetrack casinos) and four Tribal Casinos. 8,600 are employed statewide to support $1.1 billion in consumer spending. Iowa’s state gambling tax rate is a graduated tax rate with a maximum tax of up to 22% on gross gaming revenue at riverboats and up to 24% at racetracks with slots and table games. As a comparison, Nevada’s maximum tax is 6.75% of gross gaming revenues. Gross gaming revenue is the amount a gaming operation earns before taxes, salaries and other expenses are paid – the equivalent of “sales,” not “profit.”
Iowa is taking 24% off the top. No wonder Leach’s Iowa gaming supporters fear internet gaming.
iPoker
To obtain a full copy of the 2006 State of the States, contact Holly Thomsen at the AGA at 202-637-6506 or log on to www.americangaming.org.