| Posted by: eek at March 2, 2002, 10:54 am | | Topic: regulation vs irs Forum: Winner Online |
No teatax yet, but dont tell Tony Blair.
The chances are that to start with, US citizens wont be able to gamble on these new theoretical US licenced online casinos. The tax/legal situation in the US is far too unsettled.(stupid?)
1.Unenforcable cc transactions(judging by a recent case), coupled with a dodgy IRS system would create bad politics ery quickly. Plus you have a big anti-gambling lobby for some reason.
2.It will be easier to 'phase in' these casinos by targeting overseas customers only to start with, and slapping a withholding or even zero tax rate on them.
3.Until 1. is sorted US citizens are stuffed, you'll be stuck with the offshore operators.
If the software is landbased gaming control commission certified, I'll play there, even with a bit of tax. Im getting fed up of uncertified software, and I enjoy my gambling.
eek
BTW Betting tax at source in the UK was abolished only a few months ago. Why? the competition from tax free offshore betting.... | | Read Entire Entry |
| Posted by: mndokey at March 2, 2002, 10:45 am | | Topic: regulation vs irs Forum: Winner Online |
Be careful what you wish for eek.The history of regulator authorities is that are established and run to protect the interest of the businesses that they are presumed to regulate not to protect the consumer.Thus was the case when the Neveda Gaming Commission was first created. Caveat Emptor may be the best regulator.
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| Posted by: jondo at March 2, 2002, 10:24 am | | Topic: regulation vs irs Forum: Winner Online |
But would you want your gambling,cc activity,etc be scrutinized by the irs?
all gambling wins must be reported on a 1040
play 100,000 hands of bj at $5/hand could easily give you an income of $200,000. Add this to your AGI and all of sudden you lose certain deductions. IRS will allow you to net win/losses by sessions, but does not define sessions. How would you define a session online? How would the IRS? It is different than land based gambling.
You can deduct gambling losses up to the amount of wins, but unless you are a professional you must itemize these on schedule A. Many people don't itemize and would lose their standard deduction or end up paying tax on what should be losses. ie win $1000 at casino A lose $1200 at casino B
It even gets worse if you live in a State with income tax.
With the ery ague way IRS treats gambling, this to me is a scary thing. The IRS will end up as the ultimate bonus scammer.
eek, do you have to pay tea tax?
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| Posted by: babe at March 2, 2002, 9:47 am | | Topic: regulation vs irs Forum: Winner Online |
You only receive an W2G (certain gambling winnings) if you hit a slot jackpot of $1200 or more or have a keno win of $1500 or more. If you win a drawing or receive a gift worth at least $500, you will get a 1099. This also includes wins in tournaments. However, you must declare all winnings regardless of amount. You can then deduct all loses up to the amount of your winnings.
When a foreigner who does not have a social security number hits a jackpot subject to a tax form, a third is withheld. There are about 30 countries that are excempt from this withholding rule.
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| Posted by: eek at March 2, 2002, 12:56 am | | Topic: regulation vs irs Forum: Winner Online |
Im bouncing this back up because there is one properly regulated casino I know of.
However, on a previous thread they admitted that BJ cards are dealt from a constant 1/52 pack for each card.
https://www.lasseters.com.au
-------------------------------------
Lasseters Online Games are independently evaluated and Audited by
the Northern Territory Racing and Gaming Authority of Australia so you can be sure
that your games are fair.
Click here to see our Gaming Licence
Odds for a game cannot be adjusted in the system without the approval of the
Northern Territory Racing and Gaming Authority.
----------------------------------------
The fact that they cant bugger about with previously evaluated software does appeal to me.
In an ideal world all casino software should be subject to landbased gaming control commission approval.
just another thought
eek
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| Posted by: eek at March 1, 2002, 1:48 pm | | Topic: regulation vs irs Forum: Winner Online |
If online US regulated casinos did have tax slapped on them then it would be deducted at source. So an overseas player would get for example, 90 out of every 100 bucks (with a 10% flat rate). US citizens would maybe be able to withdraw gross ($100) if they were properly registered with the casino.
The losers would be the cowboys in the biz.
I wouldn't like to pay tax, but it might be the price for properly regulated casinos and gambling software.
just a thought.
eek
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| Posted by: jondo at March 1, 2002, 1:13 pm | | Topic: regulation vs irs Forum: Winner Online |
This thought just popped into my head as I was wading through all those W2-Gs and thinking maybe the Tea Tax wasn't so bad. I don't drink tea.
If Nevada or any US jurisdiction regulated online gambling, then any and all action would be reportable to the IRS.
If the US then reverses itself and says the casino resides in the server and not the PC then winnings would be taxable for everyone regardless of the country of origin.
Would anyone want to give up their privacy for regulation?
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