I don't see how that's my opinion GF. The only opinion I have is that it should be legal. If it were legal, there would be a casino next to every Starbucks and Subway. Why can somebody skirt the law by operating overseas with US players? Playing poker for money in backrooms and houses is illegal, right? Please tell me why it's different when you are playing that game on the computer with real money in the same exact room you'd be playing in live.
Dan Lambskin wrote:so with poker i assume the site would take money from the rake to pay the government, and you'd also get a W2-G for any big tourney you won or something like that
Even if the legality of collecting your payout is in question, the earnings are still taxable. And with how gambling income is taxed (money won is gross income, money lost is a deduction) the IRS can take you to the cleaners.
That's part of the reason why some pro poker players move to Europe. Earnings from online gambling can't be taxed there.
jfg wrote:I don't see how that's my opinion GF. The only opinion I have is that it should be legal. If it were legal, there would be a casino next to every Starbucks and Subway. Why can somebody skirt the law by operating overseas with US players? Playing poker for money in backrooms and houses is illegal, right? Please tell me why it's different when you are playing that game on the computer with real money in the same exact room you'd be playing in live.
Which begs the question... why is gambling illegal in the first place?
Also, there wouldn't be a casino on every street corner. Don't be silly, there's zoning restrictions for that.
GiantsFan14 wrote:I'm not positive but I think most of the taxing would be a percentage of the rake and come out of the sites pockets. The sites are still in favor of this because of how much easier it would be to move money and the large number of new players that would bring to the game. Most professional online players already pay income tax on winnings so I don't think it would change how profitable online poker can be.
Right, but the online casinos also have the option of burdening the player with that tax to make up for every 2% from the pot going to the government.
France is a few steps ahead of the US in regulating casinos and their taxation structure hasn't worked out to great effect. The US has a bigger market for gambling than France out of volume, however, and the profitability for both site and player might not be affected too greatly as France.
jfg wrote:I don't see how that's my opinion GF. The only opinion I have is that it should be legal. If it were legal, there would be a casino next to every Starbucks and Subway. Why can somebody skirt the law by operating overseas with US players? Playing poker for money in backrooms and houses is illegal, right? Please tell me why it's different when you are playing that game on the computer with real money in the same exact room you'd be playing in live.
Gambling is legal under federal law, it is the states that choose whether to prohibit or regulate it. Some states have laws prohibiting online poker, for example, Washington state has criminalized online gaming and in response Pokerstars stopped allowing players in Washington from playing on their site. In states with no online gambling laws, it is not illegal to gamble online because there are no federal laws against it. These are the states in which Pokerstars, Full Tilt, etc, operate in.
As I said earlier, because there are no federal laws prohibiting online gambling, the people in charge (who feel that we aren't capable of making our own decisions and living with the consequences) made it illegal for the sites to transfer money to and from their US customers through US financial institutions. By not allowing US customers to LEGALLY play on their sites, the sites would have lost an enormous amount of money. They were basically forced to find ways around the laws which is why they're now in so much trouble.
jfg wrote:Playing poker for money in backrooms and houses is illegal, right? Please tell me why it's different when you are playing that game on the computer with real money in the same exact room you'd be playing in live.
Home gambling is usually regulated at the state level. Depending on where you live have a home poker night may or may not be illegal. It is legal in most states with the basic clause being the "house" can't profit from the game (no rake, no entry fee that isn't paid out in full to the players, etc). Online gambling right now is regulated at the state level as well for the time being. There are a few states where playing online poker is illegal. Most of them are similar to the federal law though that just target running a gambling business.
jfg wrote:Playing poker for money in backrooms and houses is illegal, right? Please tell me why it's different when you are playing that game on the computer with real money in the same exact room you'd be playing in live.
Home gambling is usually regulated at the state level. Depending on where you live have a home poker night may or may not be illegal. It is legal in most states with the basic clause being the "house" can't profit from the game (no rake, no entry fee that isn't paid out in full to the players, etc). Online gambling right now is regulated at the state level as well for the time being. There are a few states where playing online poker is illegal. Most of them are similar to the federal law though that just target running a gambling business.
there are also numerous charity poker rooms in Michigan...i'm not sure exactly how you go about getting licensed, but there are quite a few bars and racetracks that operate under this loophole.
Dan Lambskin wrote:there are also numerous charity poker rooms in Michigan...i'm not sure exactly how you go about getting licensed, but there are quite a few bars and racetracks that operate under this loophole.
It's not really a loophole. It's built into the law to allow for licenses to be granted for charitable events.
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by jfg » Tue Apr 19, 2011 5:25 pm 
