[NickMPK]

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I don't know of any state that taxes gambling in the way you describe. Typically, the tax would come in the form of a percentage of the casino's win (or the casino's total rake in the case of poker), or the casino's corporate profits. The consumer never actually "sees" the tax. I don't know why it would be any different for internet gambling.

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But the consumer still needs to pay income tax. The entity that is affected the most is the poker site, since the rake they charge will be half as much as they received from American players before.

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So you are suggesting that internet gambling winnings be exempted from income tax? This is never going to happen, nor should it. Gambling winnings (at least net winnings) are income. To not tax them on the same scale as wages would be unfair to everyone who has a real job.