House bill would require withholding taxes

[P.V.]

A House proposal to regulate and tax Internet gambling would require online gambling establishments to withhold taxes from net online winnings, and provide detailed information about gamblers to the government in an attempt to help ensure the collection of these taxes. It would also impose a two percent federal tax on Internet gambling providers, and give states the option of taxing these companies at a rate of six percent.

Full article from the Hill: http://thehill.com/blogs/floor-actio...xes-on-winners

[Glunn11]

I love the comment on that article by Hoosier Patriot, the self-proclaimed expert on what every American wants.

I think this is genuinely the best shot at keeping online gambling in the USA. The feds are getting smarter and options are depleting rapidly. I mean, that Linwood processor stint was pretty damn sneaky and detrimental to the industry, and who knows what else they have up their sleeve? The sooner the US acknowledges online gamblers simply as players rather than criminals, the better.

Of course, this bill will not legalize gambling in the USA, but just provide a revenue mechanism if it does get legalized.

They're not attaching an additional tax on the winnings (on the federal level, anyway) from what I understand. They're simply withholding the taxes that you should be claiming on your tax returns already as per the US gambling laws that have been around for quite a while.

If we do get banned from every online casino except ones operated by American giants, so be it. It's not like we'll be getting liberty for the sake of liberty anytime soon. I quite agree with my old calculus teacher on this one: "People won't change unless it's profitable."

[EndofEsau]

So let me get this right. America may soon legalize online gambling. These casinos will be ran by American companies. So If I make a deposit and lose. The company owning this casino keeps my money. And If I win the American government gets some of it as well. Feels good to be an American.

[Glunn11]

So let me get this right. America may soon legalize online gambling. These casinos will be ran by American companies. So If I make a deposit and lose. The company owning this casino keeps my money. And If I win the American government gets some of it as well. Feels good to be an American.

If you lose, the American government will also skim a bit from the company, as well, in addition to the normal income tax that the company would have to claim.

With every spin, the government wins!

[jetset]

That phrase "It's all about the money" is well worn but true imo - despite all the blab by politicians on protecting gamblers, I get the feeling that the principal driving forces for legalisation are (a) tax revenues and (b) because it will be profitable for land gambling companies with political influence.

It does not appear to be about how Americans choose to spend their discretionary income, nor about their right to indulge in a pastime that impacts noone but themselves and is carried out in the privacy of their own homes.

US legalisation is indeed coming, it would appear, but at a cost for the ordinary player in terms of money, freedom of choice and player liquidity.

Looking at the positives, at least it will again be easier for US gamblers: you'll be able to move your own money around (in the US and to US companies) without having to resort to furtive tactics; you will be thoroughly protected by federal laws; you'll have recourse to complain about shoddy or unfair treatment; you will probably have a good selection of games and promos, and you won't feel as if your own government is trying to make you a criminal.

Trying to be positive here

[Nifty29]

I don't know why they don't adopt the Australian model.

A fixed % of RTP goes to the government, the machine owner, and the machine operators.

1.5% goes to a community support fund to provide problem gambling services and other public amenities.

No tax is paid on winnings by the individual.

At present the carve up in my state is 4% gov, 4% owner, 4% operator and 1.5% CSF which leaves about 88% returned to players.

I think its ridiculous that everyone has to keep track of winnings and file tax forms.

[Glunn11]

I don't know why they don't adopt the Australian model.

A fixed % of RTP goes to the government, the machine owner, and the machine operators.

1.5% goes to a community support fund to provide problem gambling services and other public amenities.

No tax is paid on winnings by the individual.

At present the carve up in my state is 4% gov, 4% owner, 4% operator and 1.5% CSF which leaves about 88% returned to players.

I think its ridiculous that everyone has to keep track of winnings and file tax forms.

Oh hey, that makes complete and total sense.

Of course, so does the metric system.

[slotplayer]

I don't know why they don't adopt the Australian model.

The tax infrastructure is already in place for land casinos and lotto games, no need to rebuilt it.

When a player wins at land casino or from a lotto ticket they get a W2 form. With filing taxes electronically there is no need to mail in the form.

http://www.irs.gov/pub/irs-pdf/fw2g.pdf

On the US federal tax form the filer can deduct losses up to winnings so effectively it can be a wash.

I imagine the software makers like MG for example would open an office in the US or more likely license the software to a US based company that handles all the paper work logistics.

I might add I haven't played online in a year or more but the last thing I'd do is give one of these online casinos my ss # unless they were somehow US based.

[jetset]

And talking of internet taxation....


http://www.msnbc.msn.com/id/43455123/ns/us_news/

[4 of a kind]

And talking of internet taxation....


http://www.msnbc.msn.com/id/43455123/ns/us_news/

That article is very interesting. You actually could agree with the arguments on both sides.

I also agree with your prior post that none of this is about anything to do with the constitution and USA players.

The Federal, and State government employees fighting for taxes are no different then big corporation employees trying to do what's best for their employer.

The difference is the governments will always win. All they have to do is pass a law against their competitors.

Our own constitutional rights have long ago been thrown into the sewer in exchange for money and personal careers.