New Bill Would Tax Two Percent of Poker Deposits

[jrspm]

Saw this at Cardplayer with a '20 mins ago' stamp:

[osmosis21]

So all this time it really was about money...not stopping terrorists...Im absolutely shocked

[nukeduke]

At least we have an inkling of momentum. This won't happen any time soon though IMO. They will probably tax it going in and then tax it on the way back out again.

[grignard]

When politicians are involved it is ALWAYS about

A) Votes
or
B) Money

[chillrob]

So they are going to tax deposits, whether you win or not? Actually that would be taxing the losers more than the winners...doesn't seem right. If they legalize it and keep track of deposits and withdrawals they would know who won and how much anyway, and could just tax that.

Rob

[taz115]

So for 6 to $25 Billion over 5 years they are going to make sure we don;t ripped off?

Thanks!

The tax would suck because it would get passed down to the player by most sites I think. But there is likely no way to avoid this.

Also, would they have the authority to tax all deposits or just the ones from US customers?

[rocketplayer]

Did any of you really not think that this ban was not:

1. All about getting revenue

2. All about getting the publically traded casinos access to make extra billions in profits?


Oh and from a CPA's point of view....


This won't happen soon IMHO. Also I think the tax withheld may end up being able to be taken as a credit if you actually file and report all your gambling activity.

Also, I have sent examples into the IRS of my ideas what should be done with gambling law.

I think gambling should not be treated so unfair as you can not show a loss but must pay tax on profits, can't carry losses over to a future year when you have profits (if a pro losses 5 million in 2006 and then makes 5 million in 2007 his tax is approx 2 million yet his net profit over 2 years is ZERO), profit is not taxed but sessions.

I sent in a proposal to people I know that a tax form Schedule CG should be introduced (looks much like a Schedule C) which is solely for gambling income. If the form shows a loss and you are not a pro then the loss is just lost (also no deductions allowed if you are not a pro).

If you are a pro you check a box on the form and now expenses are also allowed. If a pro shows a loss then that loss is suspended like passive losses and available to offset profits in future years.

Also the session scenario should be eliminated.

Doubt they will ever implement it but it is fair and right.

[pamplona73]

This annoys me. There will be no shortness of breath by Congress debating good and evil, right and wrong, and by the way MONEY and Votes. Is there a difference?
Imagine going into any casino and plucking down $100 at blackjack, for example, and only getting $98 in chips. Wasn't there a war once over taxation without representation?
I can see the headlines. Poker sites forced to play short handed while online players march on Congress!!
Amuses me no end that now that I'm on SS, in a way the government finances my online activities. Hence the eagle giveth and the crow taketh away.

[flafishy]

Would it be a tax on the player or the poker site?

If I deposit $100, I think the poker site would be taxed $2, not me. (Of course, they could pay for that with increased rake. But that would be strictly an issue for US sites, giving them a severe competitive disadvantage to the non-US sites.)

[dhwma]

I always tell my buddies make it legal and take 1 cent from every pot....but this is better!! as you could seemingly make one deposit!!!!!

[AuPanner]

It may end up the same as Atlantic City's $2 parking tax at the casino parking garages. The casinos eat the parking tax to get players in the door. I think some sites would eat the tax, maybe as part of some loyalty scheme ("Gold and Platinum level players - we pay the tax on your deposits!"). If they pass the fee on to us and we can't make 2.04% on our money (to get even on the tax) then maybe poker isn't our bag, baby.

[mchilger]

The good news is that 6 months after they passed a bill against online gambling there is a lot of noise and a lot of people working to reverse the law. It isn't just one person's campaign which is very good news. Hopefully they can all come to an agreement at some point and give us back our freedoms.

Matthew

[ResumeMan]