With the extreme popularity of online poker rooms and casinos, it is not surprising that the revenue generated there has caught the attention of the United States Government. With repeated efforts in the past to pass all manner of restrictive legislation and regulations that make it more and more difficult for online poker rooms and casinos to operate, the United States government has indicated clearly that it has every intention of making it more and more difficult for online poker rooms and casinos to conduct business on the Internet. With so much attention being put into the efforts to prohibit online poker rooms and casinos such as Full Tilt Poker for operating inside the United States, many industry analysts have repeatedly pointed out the effective positive effects that these types of Internet based poker rooms and gambling establishments represent for the United States government and its ability to collect tax revenue through these types of poker rooms. By taxing online poker room and casino players and the winnings that they earn, the United States government could theoretically generate a tremendous amount of revenue while accommodating the poker rooms and casinos themselves. But rather than take this tact, the government has chosen to banish all online poker room and casino activity to offshore locations, making it impossible for online poker rooms and casinos to operate within the United States. This act also made it impossible for the government to profit from the winnings that are generated through these websites.

By going through all this effort, the United States government has made it impossible to generate tax revenue through online poker rooms and casinos. But rather than concede that these types of legislation and regulations are overly restrictive, the government has chosen instead to tax the online poker room and casino players bankrolls to the tune of 2%, making it impossible for many players to compete due to the extraordinarily high tax. While 2% does not seem like much at first, when you take into account the fact that most players wager with only 1% to 2% of their bankroll at any given time, it can represent a very large investment on the part of the player and their ability to compete at the online poker rooms and casinos. With this type of tax, online poker rooms and casinos and their patrons would have an extraordinarily difficult time of competing on the web in general. By taking out 2% of the player’s winnings, the government would make it extraordinarily harsh and extremely difficult to compete at the online poker rooms and casinos without having to give up a large chunk of the players online bankroll. These effective regulations would be extraordinarily unpopular among poker players.

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