The key to getting online poker legalized

[AsiaKurosawa]

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But how can things be structured to allow such tax revenues?

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A good place to start looking for tax revenues on online poker rooms is North Dakota's HB 1509 (bill to legalize online gambling within the state).

* 50k initial license fee
* 25k yearly renewal fee
* $10 per user license fee (for each player playing on a server located within NoDak, paid for by the licensee/poker room)

Tax structure
* 8% on 1st $1m
* 6% on 2nd $1m
* 4% on 3rd $1m
* 2% on next $5m
* 1/2 of 1% on next $50m
* 1/4 of 1% on any amount over $58m

And a forced contribution a 5% surcharge up to a remaining collection of $2m, to be used for a legal defense fund for NoDak to fight the Department of Justice, which was issued an "informational subpoena" to inform North Dakota that online poker was in fact, illegal and not tolerated by the DOJ. [This last forced surcharge was added to the bill after the DOJ sent the subpoena to NoDak's attorney general].

PDF link of HB 1509 text

Not a bad deal, as Gibraltar is charging Party 6% tax, while Britain's new gambling bill doesn't alleviate the 30% taxrate of online gambling sites...

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Why would a online room move to the U.S. to pay a ton of tax?

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Sportingbet/Paradise Poker's CEO Nigel Payne said Paradise Poker would relocate to NoDak if the internet poker bill passed, and was also a sponsor/gave testimony to the Senate panel reviewing the bill.

[edit]: Though such statements and appearances were more likely publicity stunts, knowing that nothing would be moved or changed as far as Paradise's server status until the legal question was fully answered, which would take years... [/edit]

I think it's quite forward-thinking to try and get in on the ground floor if online poker was legal in the US (ie-- clarified federal laws on status of online gambling as opposed to DOJ interpretations of wire act, and for that matter no official DOJ policy to harangue online poker-- either directly or indirectly by threatening legal action against 3rd party advertisers, banking groups, etc.)

That's the true fishpond: where a poker room can say it's regulated by the US gov't. And has a free hand to advertise such (imagine: no more Golden Palace forehead tattoos, tv and etc ads like London is drowning in right now.)

Further buoying occurs by the casinos that will rush to play as well (a large non-US based casino group is already sizing up its own online poker/casino offering)... and the WPTOnline site made available to US players...

Although, I hear Malta's a nice place to visit. [img]/images/graemlins/smile.gif[/img]

aK
GamesGrid Poker (and Backgammon!)