Category Archives: Gambling

Thoughts on the Reid/Kyl Online Poker Bill

Posted on October 21, 2012 by Russ

On Friday, copies of the purported Internet Gambling Prohibition, Poker Consumer Protections, and Strengthening UIGEA Act of 2012 appeared. The draft of the legislation is just that: a draft. The actual legislation that might pass Congress in the lame duck … Continue reading →

Posted in Gambling | Tagged , , , | 2 Comments

Does the New Unearned Income Medicare Contribution Tax Impact Amateur Gamblers?

Posted on September 23, 2012 by Russ

Over two years ago the Patient Protection Act–aka Obamacare–passed Congress. At the time, no one knew what was in the law. Famously, then Speaker of the House Nancy Pelosi (D-CA) said that, “We have to pass the law to know … Continue reading →

Posted in Gambling, IRS | Tagged | 1 Comment

Partouche Poker Tour Will Honor Guarantee

Posted on September 7, 2012 by Russ

After my last post on the Partouche Poker Tour electing to ignore a published guarantee, the people in charge either decided that the horrible publicity was bad or their attorneys let them know that French law on false advertising might … Continue reading →

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Flying 5,400 Miles and Finding an $882,000 Shortfall in a Prizepool Isn’t a Good Thing

Posted on September 5, 2012 by Russ

There’s a major poker tournament going on in France: The Partouche Poker Tournament Main Event. It had a €5 million guaranteed prize pool. Based on the actual number of entrants, the prize pool ended up being around €4.3 million. Normally … Continue reading →

Posted in Gambling, International | 2 Comments

Illinois Casino Expansion Bill Vetoed

Posted on August 28, 2012 by Russ

Governor Pat Quinn (D) vetoed a casino expansion bill that would have added five casinos, including one in Chicago. His veto message stated that the biggest problem with the bill, “[I]s the absence of strict ethical standards and comprehensive regulatory … Continue reading →

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German Court to Decide Whether Poker Is Taxable for a Professional

Posted on August 23, 2012 by Russ

In 2011, Pius Heinz of Germany won the main event of the World Series of Poker and a nice tax-free $8,715,638. Well, maybe it’s not tax-free. Via @Taxdood and @Taxnews1 comes word that a German court in Cologne will be … Continue reading →

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DOJ Settles Civil Claims Against PokerStars & Full Tilt Poker; Full Tilt Balances to be Refunded to US Players; Settlement with Absolute/UB Also Referenced

Posted on July 31, 2012 by Russ

News came out this morning that the long-rumored deal that would have PokerStars acquire Full Tilt Poker, agree to pay the DOJ $731 million (the rumored amount was $750 million), and pay back players while settling the civil charges it … Continue reading →

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Another FATCA Consequence: Sending 1042-S’s With No Withholding

Posted on July 19, 2012 by Russ

One of my clients who played in the World Series of Poker asked me to prepare his Form 1042-S’s to show the required withholding for some of his backers. The 2012 form is available, and it looks identical to the … Continue reading →

Posted in Gambling, International, IRS | 1 Comment

When an Agent’s Fees Are Not Deductible

Posted on July 5, 2012 by Russ

Suppose you are a professional athlete and you hire a sports agent to negotiate with you. Those fees are, in the United States, generally deductible as an “ordinary and necessary” business expense. However, the same is not true in Canada. … Continue reading →

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Can Online Gambling Help Solve State Debt Woes?

Posted on June 25, 2012 by Russ

That’s the question this FoxBusiness report asks. (I am quoted in the story.) Of course, convincing politicians that enacting something that the public actually wants and that brings in tax revenues that the public wants to pay should be a … Continue reading →

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