Long-Term Impact Questions on Betting For a Living

bookie · 11-29-10, 05:22 PM

1) They would profile your plays. If you were beating the number consistently, they would make your life difficult.

2) Yes, you should be concerned. First, the ** fees will kill you. And second, you'll have to find different ** offices to use and eventually the head office will see a pattern and look into where you're sending it and give you a call and make your life difficult. If you're planning on paying your taxes anyway, get used to using bank wires.

3) Betting on sports is not illegal, so if you're paying your taxes you're fine. Take lots of screen shots and keep good records because you will be audited. But if you're prepared, you're fine.

4) Unless you've got a six figure bankroll and are just killing it, or have a free place to crash or something, you're really adding to your costs and professional gamblers rarely have the kind of margins that would make commuting and keeping two residences feasible. Plus running around to different sports books doesn't buy you what it used to now that they're all coordinated.

Trucker George · 11-29-10, 05:24 PM

I thought OP was making a funny.

Hareeba! · 11-29-10, 05:45 PM

fortunately I'm not a Yank so don't have all the difficulties you speak of but the first thing that hit me was why on earth would anybody with that sort of bankroll use just one book and especially one which rarely ever has the best odds?

Spartan14745 · 11-29-10, 05:57 PM

3) Betting on sports is not illegal, so if you're paying your taxes you're fine. Take lots of screen shots and keep good records because you will be audited. But if you're prepared, you're fine.

4) Unless you've got a six figure bankroll and are just killing it, or have a free place to crash or something, you're really adding to your costs and professional gamblers rarely have the kind of margins that would make commuting and keeping two residences feasible. Plus running around to different sports books doesn't buy you what it used to now that they're all coordinated.[/quote]

On Point 2, wouldn't my bank eventually deny offshore bank wires to my account if they know the funds are coming from a gambling entity?

On Point 3, sports betting online though in the US is illegal (or so I thought?). Does the IRS not care whether I have winnings online or in Vegas?

On Point 4, this "business venture" would also involve a close friend so the costs would be 50/50 (at least that's the simple way of putting it for the moment) and I wouldn't take this "plunge" unless I had a bankroll close to six figures. I understand your reasoning though on the commuting costs, that was my main disadvantage (besides potentially going to jail).

In your own opinion bookie, do you think the pros (assuming I have a good to very good winning percentage) outweigh the cons?

Thanks for your response!

Spartan14745 · 11-29-10, 06:01 PM

Originally posted by Hareeba!

fortunately I'm not a Yank so don't have all the difficulties you speak of but the first thing that hit me was why on earth would anybody with that sort of bankroll use just one book and especially one which rarely ever has the best odds?

If I were to pursue this with the larger bankroll that I have saved up I would be using multiple sportsbook for better odds, I know that's the smart way for a better long-term profit.

Hareeba! · 11-29-10, 06:44 PM

Originally posted by Spartan14745

On Point 3, sports betting online though in the US is illegal (or so I thought?). Does the IRS not care whether I have winnings online or in Vegas?

There seems to be lots of posts stating both that it is and isn't illegal but I'm pretty sure that legality is of no concern to the IRS (generally) so long as you are tax compliant

Illegal operators won't get into trouble with the IRS so long as they comply with tax law .... remember that it was tax which eventually brought Al Capone unstuck as they couldn't pin anything else on him

I think perhaps money laundering and drug trafficking may be exceptions?

sharpcat · 11-29-10, 06:59 PM

One does not become a professional gambler with a $100,000+ bankroll overnight. These concerns are all things that would be learned along the way so obviously I would conclude that you are thinking way too far into the future here.

1) The IRS does not care about any laws other than laws that pertain to collecting taxes on all earned income (whether it be in Vegas, online, or from your local bookie).
2) Banks do not care about transactions coming from offshore they are only concerned with whats going out.
3) Nobody has ever been prosecuted for online gambling the government is focused on those who are taking wagers.
4) ** is required to report any suspicious activity to the IRS, i.e. transactions over $2,500 or frequent transactions.

Don't get too far ahead of yourself

Spartan14745 · 11-29-10, 08:42 PM

Thanks guys for the comments! You've definitely cleared my head on some of the important stuff.

EasyHustlin · 11-29-10, 08:58 PM

Would it be possible to just wire your money to an offshore bank? The IRS couldn't touch it.

spot picker · 11-29-10, 11:52 PM

spartan when your threw with the girl send her my way.

durito · 11-30-10, 11:28 AM

If you aren't comfortable receiving checks and wires you aren't gonna be able to bet for a living in the usa.

I don't know where you are getting a 50% tax rate either.

katstale · 11-30-10, 12:23 PM

If you have sufficient bankroll at this time and you are confident with your model--you should be moving offshore to a country which doesn't care about your "work".

bookie · 11-30-10, 12:28 PM

Originally posted by Spartan14745

[I]3)

In your own opinion bookie, do you think the pros (assuming I have a good to very good winning percentage) outweigh the cons?

Do you mean the pro's of going to Vegas? No. I don't. I don't see any net cost-benefit at all to going to Vegas.

Or do you mean the pro's of becoming a sports bettor? I guess I don't think it's a pro-and-con thing. You grow into it or you don't. Here I have to agree with the posters who've suggested that you might be more fantasizing than planning. Do you have a track record of making a thousand plays a year with real money on real lines and hitting 54%? It seems like if you do, then the experience of doing so would have guided you through these questions.

I'm not saying you can't do it, but I am saying don't get ahead of yourself. Make sure you have experience of doing this day after day and going through the traumas of downswings and all that before you uproot your life and take your friend's money.

Johnny 55 · 11-30-10, 12:36 PM

The real question is this: If you figure out how to make money and that is a big if, and you live in the United States and you decide you want to make real money by moving out of the country where you can move funds electronically, where is the best place to live that is safe, has good weather, and is easy to obtain a VC?

alling · 11-30-10, 01:02 PM

Originally posted by katstale

If you have sufficient bankroll at this time and you are confident with your model--you should be moving offshore to a country which doesn't care about your "work".

good point

Spartan14745 · 12-01-10, 08:59 AM

There's no way I'm going to be moving offshore to a different country, life's too short to be away from family, not even for money. If I was a loner, didn't have much family, and didn't have a long-term relationship going on then maybe I'd look into it.

Durito, I have no idea where I read 50% as the tax rate but I know I did read it. Just looked on the IRS website and I see it's a flat 25%. Thanks for questioning my comment!

Guys, this isn't something that I'm planning on doing tomorrow or even next month. I've been betting for a while and doing well so it sparked my interest on doing it full-time instead of a hobby but I was in no means ready to quit my job today. In fact, if I was going to go through with this it wouldn't be for another couple of years or so to get myself debt-free and not have many monetary obligations. I have thought this through but that was the point of this thread, to gain advice on the long-term ramifications. And you guys certainly helped!

I appreciate ALL the comments in here and anyone else who pops their head in please post any of your own comments, I continue to read this thread and will do so.

Johnny 55 · 12-01-10, 12:39 PM

So you currently have debt, you have no idea about tax rates, you have no idea about how much more money you would make offshore and it is considerable due to the ease of moving money but you have been doing well betting and think you will make a career out of it. This sounds like a great long term plan, where do I sign up to invest in this idea.

RickySteve · 12-02-10, 01:00 AM

Originally posted by Johnny 55

So you currently have debt, you have no idea about tax rates, you have no idea about how much more money you would make offshore and it is considerable due to the ease of moving money but you have been doing well betting and think you will make a career out of it. This sounds like a great long term plan, where do I sign up to invest in this idea.

...

RonPaul2008 · 12-02-10, 01:15 AM

There is nothing illegal about betting on sports online.

trixtrix · 12-02-10, 08:09 AM

i'd think the debt part would make it even more worthwhile to get out of the country

odysseus · 12-02-10, 08:21 AM

So is everyone sayng that gambling winnings are taxed at 25% (or 50%) in the US? That sucks!

zjohnzzz · 12-02-10, 08:26 AM

every kind of income is taxed legal or not

HeeeHAWWWW · 12-02-10, 08:35 AM

Move to the UK, no tax on gambling income, can use pinnacle and co unimpeded .......

durito · 12-02-10, 08:40 AM

Originally posted by odysseus

So is everyone sayng that gambling winnings are taxed at 25% (or 50%) in the US? That sucks!

They are taxed, both of those rates are just made up. The rate depends on how much you make like most everything else.

Originally posted by HeeeHAWWWW

Move to the UK, no tax on gambling income, can use pinnacle and co unimpeded .......

USA citizens still owe taxes no matter where they live.

John Dough · 12-02-10, 10:04 AM

Originally posted by durito

They are taxed, both of those rates are just made up. The rate depends on how much you make like most everything else.

Exactly correct. Your amount of income puts you into whatever tax bracket it puts you, whether you're a professional gambler or a doctor.

tachi · 12-02-10, 04:03 PM

Originally posted by Johnny 55

The real question is this: If you figure out how to make money and that is a big if, and you live in the United States and you decide you want to make real money by moving out of the country where you can move funds electronically, where is the best place to live that is safe, has good weather, and is easy to obtain a VC?

Colombia! (like durito).

plus you can choose between Colombian's beaches at the Pacific ocean
or their Caribbean beaches.

durito · 12-02-10, 04:16 PM

Good luck moving gambling funds in and out of Colombian banks.

Good luck on the pacific coast too.