Nevada To Legalize & Tax All OnLine Gaming

[Charade You Are]

Lucky Nevadians(sic?).

A little disappointing:

The federal Unlawful Internet Gambling Enforcement Act of 2006 prohibits interstate online wagering, and efforts in Congress to open the door have made little progress.

But with Internet gaming already available overseas and a potential $5 billion U.S. online poker market at stake, gaming experts believe it’s only a matter of time before Congress reconsiders and gives the go-ahead.

“It could be two years or 10 years, but over time, the arguments for it get stronger,” said Bill Eadington, a University of Nevada, Reno economist.

 

[tbdbitl]

The federal Unlawful Internet Gambling Enforcement Act of 2006 prohibits interstate online wagering, and efforts in Congress to open the door have made little progress.

When did this "Act " expand to cover more than just the legality of banks to allow financial transactions to gambling sites? I didn't think that the Act EVER made the act of wagering illegal!

 

[Charade You Are]

When did this "Act " expand to cover more than just the legality of banks to allow financial transactions to gambling sites? I didn't think that the Act EVER made the act of wagering illegal!

Good point - Don't know how I missed that.

Seems like most articles re poker can't be taken at face value.

This is the worst one I've seen lately: http://www.csmonitor.com/Commentary/the-monitors-view/2012/0822/Misdeal-on-Internet-poker-gambling

 

[tbdbitl]

Good point - Don't know how I missed that.

Seems like most articles re poker can't be taken at face value.

This is the worst one I've seen lately: http://www.csmonitor.com/Commentary/the-monitors-view/2012/0822/Misdeal-on-Internet-poker-gambling

It's amazing as I listen to Podcasts how uninformed many are. Gary Wise made a comment on the Poker Edge the other day about the reason FTP wouldn't be able to refund the US Accounts themselves was because online poker is illegal in the US. And the ESPN Poker Media Puppet, Andrew Feldman, let him slide. He didn't even ask Gary the obvious question, "Then how was pokerstars able to refund US players directly?"
This effort wouldn't be so difficult if the experts with a voice weren't so retarded!

 

[AlfieAA]

why would they tax it?....i thought that was what rakeback was for....if you are gambling you shouldnt have to pay tax...unless it is your full time job then i suppose you would need to declare something for national insurance etc...thank god im from the uk...americans get shafted

 

[CANDYMAN1414]

why would they tax it?....i thought that was what rakeback was for....if you are gambling you shouldnt have to pay tax...unless it is your full time job then i suppose you would need to declare something for national insurance etc...thank god im from the uk...americans get shafted

Yeah that was my first thought. How are they gonna tax it? On your initial depsoit or on all your winning after you leave the table?

 

[CAMurray]

why would they tax it?....i thought that was what rakeback was for....if you are gambling you shouldnt have to pay tax...unless it is your full time job then i suppose you would need to declare something for national insurance etc...thank god im from the uk...americans get shafted

I dont know exactly how the laws are written as far as taxable game winnings but Ill share my recent local experiences.

Playing 5/10NL in Januarly I was asked to fill out a tax form for a $6,100 win when I bought in for $1,500. The manager told me that I just went over the line of $4,300, which pissed me off b/c I thought when your in a ring game it was different. That was at the Atlantis.

I won the Regular Friday $130 Bi at the Peppermill for $2,100 a couple of months back and was made to fill out the same form being told $2,000 was the cut off and I should have chopped.

And last month I won a couple of smaller sanctioned tournaments at the Grand Sierra Resort for less than $3,000 and when I asked where the cut off was for taxable wins, they said you dont have to worry about that until $6,300.

Bottom line is, I have no idea what is really required but I do know they pretty much go by their own rules around here.

:dontknow:

I do know that you hang onto your BI receipts like their gold.

 

[AlfieAA]

@candyman i know it doesnt make much sense how they could tax it....i dont think they could tax on a deposit as you havent made any money yet...

 

[AlfieAA]

@camurray well for a start mate, the only people that can make you fill out a tax form is the official tax office.....i dont know what they are called in america...in the uk it is HMRC......the fact that a casino asked you to do it sounds dodgy mate, a scam......unless you get an official form from an official tax office through your door you shouldnt fill out any forms at any casino

 

[AlfieAA]

you dont pay tax to the casino, you pay tax to the tax man lol

 

[dj11]

@candyman i know it doesnt make much sense how they could tax it....i dont think they could tax on a deposit as you havent made any money yet...

Same way they can tax any product at the time of sale. You have paid the tax, but have not enjoyed it yet.

Not a popular option for sure, but from a political POV, it makes a lot of sense. Easiest to predict.

 

[nevadanick]

@camurray well for a start mate, the only people that can make you fill out a tax form is the official tax office.....i dont know what they are called in america...in the uk it is HMRC......the fact that a casino asked you to do it sounds dodgy mate, a scam......unless you get an official form from an official tax office through your door you shouldnt fill out any forms at any casino

They don't make you 'fill out the form' but they CAN and DO make you give them your IRS info so they can issue the appropriate IRS reporting form. The casinos are REQUIRED to do this. Refuse to give them the info in the US and one of two things will happen ... you WILL NOT be paid your winnings -or- the casino WILL deduct the required IRS amount (~40%) and give you the rest.

you dont pay tax to the casino, you pay tax to the tax man lol

Actually, if the us casino deducts your required tax amount in lieu of you providing the appropriate info for the tax form, you will leave that amount in the hands of the casino... who in turn will forward it to the IRS. Again.. required by law... US tax law... not an option based on your opinion.

******************

 

[dmorris68]

@camurray well for a start mate, the only people that can make you fill out a tax form is the official tax office.....i dont know what they are called in america...in the uk it is HMRC......the fact that a casino asked you to do it sounds dodgy mate, a scam......unless you get an official form from an official tax office through your door you shouldnt fill out any forms at any casino

The US tax situation is very much different from that in the UK. In the US, businesses that pay you anything classified as taxable income are authorized -- in fact, required when amounts exceed certain thresholds -- to collect your information for issuance of necessary tax forms. They are also allowed in some cases to withhold taxes and submit them to the IRS on your behalf.

In the specific case of gambling winnings, they will issue a W-2G or a Form 1099-MISC, depending on the type of winnings and dollar amount, as well as submitting those same forms to the IRS. They are generally supposed to do this for amounts exceeding $600, but whether they do or not, you are still required to report ALL winnings on your taxes.

 

[Big_Rudy]

why would they tax it?....i thought that was what rakeback was for....if you are gambling you shouldnt have to pay tax...unless it is your full time job then i suppose you would need to declare something for national insurance etc...thank god im from the uk...americans get shafted

Not sure how you think rakeback has anything whatever to do with being a substitute for taxation? And, in the US gambling proceeds definately ARE taxable, whether you think they should be or not. I can see explaining that to "the man" now,.....Well....ummmm...sir.....I didn't pay that tax because in my opinion it shouldn't be taxable .

@candyman i know it doesnt make much sense how they could tax it....i dont think they could tax on a deposit as you havent made any money yet...

They can easily tax it at any point they feel like. It will be new territory when/if internet gambling/poker is allowed here and they will, at that point, write the laws about taxation of those activities however they feel like writing them.

I actually HOPE they tax deposits and NOT at the withdrawal stage. That way any winnings you have will not be taxed, so your net tax should be lower, assuming you are a winning player. I doubt that's how it'll happen though. Most likely the sites will be required to withhold a portion of your winnings at time of withdrawal to cover any taxes due, and/or at a minimum, report the amount of your withdrawal to the IRS so that they will have your information for tax purposes.

 

[GOIVIT]

@camurray well for a start mate, the only people that can make you fill out a tax form is the official tax office.....i dont know what they are called in america...in the uk it is HMRC......the fact that a casino asked you to do it sounds dodgy mate, a scam......unless you get an official form from an official tax office through your door you shouldnt fill out any forms at any casino

I don't think it works that way here in America. The casino is required to get a 1099 forum when ever you have a "big" win. Big is in their mind. I live in Colorado and have had to fill one out for a much smaller win for a bad beat. The table got a split >$1,000 dollars and had to fill one out. This forum is sent to the IRS (really bad people) for taxing purposes.

 

[Bowman]

Nevada Gaming Commision

I thought in the State of Nevada there were no state taxes. Well I guess this is different than being state taxrs. Then again, I have not been to Nevada in some years. Can anyone explain this please?
I know when I was younger, I lived in California near Truckee or Reno I would go across the border to get my cigarettes. Cost was less and no taxing.

 

[dmorris68]

http://www.bankrate.com/finance/money-guides/reporting-gambling-winnings.aspx

And while poker aficionados argue the card game isn't gambling, but a game of skill, the IRS still wants details on how well you played Texas Hold 'Em. The IRS now requires all poker tournament sponsors to report competitors' winnings of more than $5,000.

The bottom line is if you are lucky enough to rake in a decent jackpot on a gambling transaction, you'll have to give the IRS your tax information and, in many cases, you're not going to walk away with all the cash you won.

In addition to telling Uncle Sam you were a winner and how much, the payer in these situations generally will reduce your payout by withholding federal taxes at the 25 percent rate. If you try to shortchange the IRS by refusing to furnish your Social Security number, the payer could take as much as 28 percent of your winnings right off the top to send to the tax collector.

In either instance, you'll get a Form W-2G showing the amount you won and, if applicable, how much in taxes you paid on it upfront.

When you have to report it

Even if you didn't win enough to trigger W-2G filing, you do want to be a diligent taxpayer and report those gambling winnings, right? The casino, track or lottery agent might not have reported that $25 you won, but it's still taxable income. It's ultimately the taxpayer's responsibility to tell Uncle Sam about his good fortune.

You report your winnings -- from the W-2G or those smaller jackpots -- on line 21, Other Income, of Form 1040. In addition to gambling proceeds, this is where you'd report any prizes or awards (cash or the cash value of merchandise) you won. All this money goes toward your total income amount

It goes on the describe how, if you itemize deductions, you can offset winnings with losses. But you can't deduct losses in excess of winnings, thus resulting in a net tax benefit. Presumably you all know this since you've been paying your taxes on poker winnings for awhile now.

 

[AlfieAA]

yeah its different in the uk.....if you go to a casino here all your winnings are yours and you dont have to declare anything.....they might not let you back in again if you clean them out lol but you get the lot