Yesterday Representative Jim McDermott introduced legislation that directs a potential US 40 billion over the next 10 years to be spent on job training for those in the declining sectors of the economy and educational assistance for foster care youth. The legislation, Investing in our Human Resources Act of 2008 (H.R. 6501), would be funded through new revenue generated by regulated Internet gambling activities.

A provision in the legislation also encourages responsible Internet gambling behavior and an awareness of unsafe practices, something which has been praised by problem gambling advocates.

In a sign that the legislation has support from key members of the Democratic Congressional leadership, Reps. George Miller (D-Calif.) and John B. Larson (D-Conn.) are original co-sponsors of the legislation. 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.

Revenues from regulated Internet gambling are estimated to be between US 8.7 billion and US 42.8 billion over 10 years, according to a recent tax revenue analysis prepared by PricewaterhouseCoopers. Through IHRA, these revenues would be allocated annually to each state through a new Transitional Assistance Trust Fund. A state would be entitled to receive its allotment based on its percentage of the total population.

The Internet Gambling Regulation and Enforcement Act, introduced by Rep. Frank in April 2007, establishes an enforcement framework for licensed gambling operators to accept bets and wagers from individuals in the U.S. It would include a number of built-in consumer protections, including safeguards against compulsive and underage gambling, money laundering, fraud and identity theft. The legislation would also reinforce the rights of States to control what, if any, level of Internet gambling is permissible within their borders, including the ability to apply additional taxes, and to ensure that appropriate consumer protections and limitations were in place.

Rep. McDermott's earlier bill, the Internet Gambling Regulation and Tax Enforcement Act, would ensure the collection of taxes on regulated Internet gambling activities.