5 Recent Anti-Gambling Laws to be Weary Of
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Like it or not, we live in a country where many people consider gambling a vice - and politicians consider it a crime. That’s why no gambler can afford to ignore the many anti-gambling laws on the books. Whether it’s restrictions on Internet poker or taxes on your casino winnings, the legal ramifications of a fun night out can be staggering. But don’t be alarmed! By taking a few minutes to brush up on the most important laws, you can wash your hands of this once and for all. Let’s dig in!
1) Unlawful Internet Gambling Enforcement Act of 2006
Internet gambling hasn’t sat well with lawmakers since day one. Whether that’s justified or not, this particular law is worth knowing about. Essentially, it prohibits being an “online bookie”, or taking bets from people. According to an ESPN article (which downplayed how much impact the law is likely to have), the Unlawful Internet Gambling Enforcement Act had an immediate “chilling effect” on Internet gambling communities, particularly those catering to football fans:
In checking with one online site yesterday, Weitzner found customer withdrawals were up 10 percent, and the action on “Monday Night Football” was down.
2) United States Gambling Ship Act
Gambling ships are one of the most fun and exciting vacations you can go on. Unfortunately, it’s actually unlawful to operate or ride on one in United States waters. Any vessel that can transport passengers across water, through the air, or a combination of both, and contains sleeping quarters for its passengers as well as devices used for gambling, is deemed to be in illegal operation. This is the case for every state except Alaska. Therefore, make sure any gambling ship you’re about to sign up for docks and launches in foreign waters!
3) Deval Patrick’s Anti-Gambling Bill
Everyone who loves playing online poker has a new name to look out for. Massachusetts governor Deval Patrick has proposed a new bill to congress that would all for a $25,000 fine or a two year jail sentence for anyone caught playing online poker, even when the games have no money at stake. You might be thinking, “That’s crazy! Making criminals out of people who enjoy a good game of cards is ludicrous!” That is the same sentiment that most Massachusetts residents share. In fact, Harvard law professor Charles Nesson commented on the matter by saying “I don’t think filling our expensive jail cells with poker players is what Massachusetts voters had in mind when they elected Deval Patrick.” Nevertheless, online poker players in Massachussets should be mindful of it.
When you and the guys go out Friday night and pull down the big bucks from the horse track, don’t forget to let the IRS know what you won! Usually you want to report these winnings on your W2 form, under line 21, “Other Income.” You might think you don’t need to inform Uncle Sam about your good fortune, but be sure that the Casino likely reported that $8,000 you took home last year. If the government notices this, you will wind up in court for tax evasion. Don’t risk it, just report it.
As the proprietor of a fine gambling establishment, it is your responsibility to report your pay-outs to the IRS. Not only must you report the total amount you have paid out, but also who it was paid to. On all horse track payouts over $600.00, slot machine pay-outs over $1,200.00, or all other winnings over $1,500.00, it is your responsibility to get the winner’s social security number, and ensure that it gets reported to the IRS. Any discrepancies between what a good, honest winner reports that he won at your house of gambling and what you reported that he won, may resort in an investigation.