House bill would require withholding taxes

[Nifty29]

I do know that at skill gaming sites in the US, winnings are subject to withholding tax which can be claimed back at the end of the year. The gaming company reports to the IRS and issues income forms etc to allow this to occur. AFAIK in some cases where there is a net loss, any tax withheld is refunded at regular intervals by the company itself.

I guess the question is are you happy to have the IRS earn interest on your money or would you rather have it in your pocket?

[4 of a kind]

I guess the question is are you happy to have the IRS earn interest on your money or would you rather have it in your pocket?

I clearly understand your point here, but there are still several other ways to look at this when and if the USA decides to regulate and tax online gaming.

Everyone for the most part is usually aware of the tax laws that would apply relating to just about anything we do. Every level from poor to rich people understands these tax laws. Although some may want to say here they are law abiding citizens and never cheat the tax laws, most people throughout their lives will go out of their way to avoid paying taxes every chance they get.

A person buys a used motor vehicle and gets a bill of sale for less then they paid to avoid paying taxes on the full amount when they register it. I know people that sold million dollar properties, with six digit amounts of cash under the table transactions to avoid capital gains. People with multi million dollar annual salaries hire tax lawyers to mange their income and know every loop hole in the laws to avoid paying taxes. The people paying these tax specialists salaries must obviously feel it’s worth it considering what they must be gaining in fewer taxes. The list of tax cheating going on everyday is endless and takes place just about every time there is an opportunity.

I think most would agree (excluding whales) that paying taxes on gambling winnings really isn’t that big of a deal. Most gamblers will lose more then they win every year and will usually get off tax free. Of course not paying any would be ideal, but when you consider you couldn’t buy a pack of chewing gum without being taxed, why should gambling be any different?

With land based casinos of course if you’re playing slots and hit big you have to sign a tax form and be bothered with the efforts of being able to prove you lost more then you won for that year. I would also like to mention here that even if you won more then you lost gambling during any given year; their are ways to gather fraudulent records to prove otherwise, and is being done constantly. At a land based casino if you win more then ten thousand dollars in chips at the tables, you never go to the cashier and flop all your chips at once on the counter. You make several trips throughout the day at different windows cashing a couple grand at a time. Horse bettors knowing they have a good chance to make a big spike at race tracks, place their bets in small intervals making several trips to several windows, and if they spike cash out the same way.

The only problems I see with paying taxes and online gaming is that every bet is recorded. Their would be no sneaky ways to cash out if you’re a big winner. In addition if big brother wanted to review your gambling activity, I would assume with a simple request would be able to review all your past bets. This could be a serious problem for the player that losses more then he could justify, which would indicate further tax evasion being conducted with other personal incomes that were reported in the past.

If loop holes can’t be figured out concerning online gaming and taxes if this all were to even come about, players would know this and be certain to gamble within their alleged means online.

Regardless, most punters wouldn’t need to worry one way or the other if in fact they are low-rollers and like most say here, are reformed, and never gamble beyond their means.

In addition, gambling should be viewed by most as just another form of entertainment. If the USA regulates and taxes online gaming you would then have to make a choice. Are you more comfortable knowing it’s regulated and you‘ll receive every cash out in the USA? If you think your going to win too much and taxes will become a major problem then of course you’ll have to opt out.

If you have to worry about who’s going to collect the interest on your taxes that are withheld from winnings during the year, maybe that’s not that bad of a problem to have. Paying millions of dollars in taxes up front after winning a lottery is considered a blessing.

[GrandMaster]

I guess the question is are you happy to have the IRS earn interest on your money or would you rather have it in your pocket?

Experience shows that Americans would rather lend money to the government interest-free and get a refund than adjust their withholding and owe money on their tax return.

[P.V.]

Well not sure if this will pass but it appears the UK is facing online gambling taxes too.

http://www.hinckleytimes.net/news-in...5367-28972018/

[felicie]

It'll be interesting to see if US players will continue to participate at non-US licensed casinos just to avoid the "big brother" aspect of the feds keeping track of your gambling activities.



US players will be in a database and the US government will know how much each individual spends on gambling...to the penny.

Like I have said so often, be careful what you wish for.

Shhhhhh

And I saw yesterday Vegas stocks went up nicely although don't know if that has anything to do with anything but it made me go ah ha! lol