Taxes in Vegas Sportsbook?

big joe 1212 · 07-18-09, 09:45 AM

I know when you cash chips in, they have to report anything over 10k in 1 day, but it's still not taxable in any way! I assume that they report sports winnings in excess of 10k, but it's not taxable also.

Any bet in a sportsbook is not taxable, unless you are declaring that you gamble for a living. Unless it's some crazy odds or contest that you have won.

Justin7 · 07-18-09, 10:48 AM

Most sports bets do not have withholdings. If you win a parlay at odds of greater than 300:1 (I think), they get your SSN and keep withholdings.

DJJimGreen · 07-18-09, 12:30 PM

ahhh.. so if I go into the book and take out 2k, I shouldn't worry about reporting the winnings..

Justin7 · 07-18-09, 02:29 PM

You still have to report it. If you win money at gambling, you owe the IRS. But the book won't do it for you in that instance.

DJJimGreen · 07-18-09, 03:07 PM

Originally posted by Justin7

You still have to report it. If you win money at gambling, you owe the IRS. But the book won't do it for you in that instance.

I was hoping you wouldn't say that. =(

bettman · 07-20-09, 11:25 AM

Originally posted by big joe 1212

I know when you cash chips in, they have to report anything over 10k in 1 day, but it's still not taxable in any way! I assume that they report sports winnings in excess of 10k, but it's not taxable also.

Any bet in a sportsbook is not taxable, unless you are declaring that you gamble for a living. Unless it's some crazy odds or contest that you have won.

good to know

Scooter · 07-20-09, 04:26 PM

Originally posted by big joe 1212

I know when you cash chips in, they have to report anything over 10k in 1 day, but it's still not taxable in any way! I assume that they report sports winnings in excess of 10k, but it's not taxable also.

Any bet in a sportsbook is not taxable, unless you are declaring that you gamble for a living. Unless it's some crazy odds or contest that you have won.

There really should be a Sticky on each sportsbetting forum answering these issues.

The same questions are asked constantly, and - at least as applies to citizens of Amerika - there's no shortage of off the wall incorrect answers, such as the above.

DJJimGreen · 07-21-09, 12:58 AM

Originally posted by Scooter

There really should be a Sticky on each sportsbetting forum answering these issues.

The same questions are asked constantly, and - at least as applies to citizens of Amerika - there's no shortage of off the wall incorrect answers, such as the above.

That's what I was thinking.. and I'm sure what I asked was not the first.. just couldn't find any posts about Vegas residents and tax stuff.

Nickelicious · 07-21-09, 02:24 AM

I hope to retire in Vegas, so I am curious.

This I do know: All gambling wins are taxable, period, no matter how you got them (even a back-alley 3 monty game). But your net winnings can be reduced up to the amount of money you lost in the same taxable year. So for all the losers out there, as long as you keep records of your losses, you are safe.

For all you winners out there: tsk tsk, you are cheating our bloated government out of their money to pay for their pork projects!

And for all those who say that legalizing online gambling in the U.S. is a bad idea and would ruin our lives: Have you lost your freakin' minds?

DJJimGreen · 07-21-09, 02:30 AM

Originally posted by Nickelicious

I hope to retire in Vegas, so I am curious.

This I do know: All gambling wins are taxable, period, no matter how you got them (even a back-alley 3 monty game). But your net winnings can be reduced up to the amount of money you lost in the same taxable year. So for all the losers out there, as long as you keep records of your losses, you are safe.

For all you winners out there: tsk tsk, you are cheating our bloated government out of their money to pay for their pork projects!

And for all those who say that legalizing online gambling in the U.S. is a bad idea and would ruin our lives: Have you lost your freakin' minds?

My big question is.. how many people AREN'T reporting their winnings, if the casino's aren't making them fill out paperwork.. Hmmm

Nickelicious · 07-21-09, 02:46 AM

A shitload of people aren't reporting their winnings. Like, um... maybe 99% if the casinos aren't making them fill out the paperwork. And as for the sports books, my God, just look at the people trolling these boards!

That's why they say the government could earn $3-5 billion a year just from taxing the books. There is pending legislation to change the current laws.

http://www.onlinecasinoadvisory.com/casino-news/online/online-casinos-face-loss-of-confidence-says-survey-43051.htm

"If running major financial institutions and the auto industry isn't enough for the Obama administration, a new House bill would put the Treasury Department in charge of Internet gambling.

Reps. Barney Frank, D-Mass., chairman of the House Financial Services Committee, and Peter King, R-N.Y., unveiled legislation Wednesday that would enable Americans to legally gamble online.

"The government should not interfere with people's liberty unless there is a good reason," Frank said. "This is, I believe, the single biggest example of an intrusion into the principle that people should be free to do things on the Internet. It's clearly the case that gambling is an activity that can be done offline but not online."

But the legislation grants the Treasury Department far-reaching power over online gambling.

The bill would allow the Treasury secretary to license and revoke licenses of Internet gambling Web sites under the guise of protection Americans' personal freedoms to gamble and consumer protection concerns.

The bill would also allow the Treasury secretary to "assess" license holders for the costs of background checks and investigations of Web sites applying for the license.

And the bill provides for mechanisms for state and local taxes to be collected and re-distributed.

The law currently prohibits credit card companies and banks from processing bets placed on online gambling Web sites.

The legislation will repeal language passed in 2006 and signed into law by President Bush that made it illegal for banks and credit card companies to process bets made on the Internet.

Opponents argue that this will serve as a "clear danger to our youth" and encourage gambling addiction at a young age.

"If you put a computer in a teenager's bedroom, or in a student's dorm room at college, it's a temptation that many fall prey to," Rep. Spencer Bachus, R-Ala., said in a statement. "In fact, studies have shown that the earlier one begins gambling, the more likely it is he or she will become a compulsive problem gambler."

But Frank said his bill will include safeguards to prevent underage or compulsive gambling and other illegal activity.

"The notion that a society should prohibit something entirely because of the possibility that children will abuse it is a terrible blow to liberty," Frank said.

Among the safeguards in the bill is that any Internet gambling operator would be required to: ensure an individual placing a bet is of legal age (as defined by the law in the state or tribal area) and physically located in that jurisdiction, combats compulsive Internet gambling and money laundering, and protects privacy.

Frank added that he feels this will lift the burden off banks, which are compelled under the current legislation to regulate gambling activity.

The Poker Players Alliance, chaired by former New York Sen. Alfonse D'Amato, supports the bill. D'Amato said Wednesday in a press release that he is "grateful for Chairman Frank's leadership and will be activating our grassroots army made up of over one million members to help him drive legislation."

Michael Brodsky, head of Youbet.com, an online gambling Web site, praised Frank's bill.

"Banning Internet gambling has the same effect as the ban on alcohol had during Prohibition," Brodsky said. "It merely drives the activity underground, forgoes massive tax revenues and makes criminals out of otherwise law-abiding citizens.

"Chairman Frank's bill realities and would bring this underground activity into the light," he added.

billdo75 · 07-21-09, 09:07 AM

Originally posted by Nickelicious

The legislation will repeal language passed in 2006 and signed into law by President Bush that made it illegal for banks and credit card companies to process bets made on the Internet.

On a side note, that legislation was BS. If I recall correctly, the powers that be had tried several times to pass that bill and failed. Because they couldn't get it passed on it's own, they decided to attach it as a rider to a Homeland Security bill. Because everyone was so high on Homeland Security, that bill passed and the internet gaming legislation went with it. Dirty pool, man...