vpFREE2 Forums

AC poker

#1

John F. Thomas, Jr., Esq. wrote:

"DBDJ" is referring to the "Double Bonus Double Jackpot" machines
which are at Harrah's and some other places. 8000 coin RF payout.
It's a slightly positive game, but a brutal variance. If you don't
hit a RF or good quads, you're hurting.

To add a bit to this, if you're thinking of taking a shot at a quarter
DBDJ machine, you might as well leave your twenties at home. It'll
frequently make mincemeat of them. In between quads you're looking at
an hourly drain of about $160/hr. (@ 600 hph)

If you've got a distinct palate for volatility, a strong stomach, and
crave the thrill of a $2K jackpot on a quarter machine then you might
feel right at home. But psychologically you should go into it viewing
it as a $.50 FP DB play - that's what your bankroll swings will be
roughly akin to (without the benefit of $.50 level cashback and comps,
of course).

- Harry

#2

I dont like the game because its too volitile for my taste. Maybe one of the math people can say. Since hitting the royal mean's a W-2G and taxes, does that make it a negative game?

Ned C.
The Wild Joker

···

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#3

<<I don't like the game because its too volatile for my taste. Maybe one of
the math people can say. Since hitting the royal mean's a W-2G and taxes,
does that make it a negative game?>>

Repeat after me, everyone: Whether you get a W-2G or not, this factor has
NO bearing on how much you are REQUIRED pay in taxes on your gambling.

(I know, I know - most people who have no paperwork about their gambling, do
not mention it to the IRS - and the chance of getting "caught" is very
slight. But you should always remember that if it comes up in an audit, you
will probably owe money, including penalties!!! And if you have even one
W2G, the IRS will very likely take the position that you probably have had
other sessions when you won. Don't want to be an alarmist here - but the
IRS is looking at gambling issues more closely now because of the spread of
casinos. The only reason they don't "catch" more non-compliers now is the
lack of staff - and the fact that they do figure that most people DO have
net losses rather than net wins.)

···

________________________________________
Jean $�ott - Go to http://www.FrugalGambler.biz
for VP software and strategy cards; "frugal" books;
and the NEW "Tax Help for the Frugal Gambler."

#4

Jean Scot wrote:

Repeat after me, everyone: Whether you get a W-2G or not, this
factor has NO bearing on how much you are REQUIRED pay in taxes on
your gambling.

By the letter of the law you're correct Jean. However, when it comes
to small stakes, I never hear of a short form filer who reports gross
winning sessions without netting losses, as IRS guidance would
dictate. At best, they report annual wins on a net basis. Who's
reasonably going to cough up hundreds of extra dollars in taxes on
modest play that's near breakeven or at a loss. W2-G wins are a real
hazard for those players.

Gross winnings documented by W2-G's put the short form filer at a
severe disadvantage. W2-G's can far outstrip net wins and 1040-A/-EZ
filers have little ability to justify reporting smaller taxable wins
than the W2-G's reflect. Even if the player switches to a long form
to offset the win with itemized Sched. A gambling losses they end up
absorbing taxes on the difference between their other deductions and
the standard deduction.

- Harry

#5

The IRS is well aware that the casinos hold the mathematical edge and DO NOT
EXPECT taxpayers to win more than they lose. The exception is major wins
like Cash for Life, Megabucks or jackpots that run into the thousands of
dollars. If you receive a W2G, the IRS EXPECTS you to have losses to off
set this win. The gambling crackdown by IRS applies to professional
gamblers who make a living playing live Poker and Sports Betting. In spite
of the fact that everyone who plays video poker claims to consistently win,
the IRS knows this is mathematically unsound and is NOT expecting to reap
revenue from casino gamblers. THIS IS A MYTH perpetrated by those with a
vested monetary interest in selling tax help books and other paraphernalia
on gaming. The IRS (and states) reap their gaming revenue from the taxes
imposed on the casinos.

···

----- Original Message -----
From: "Jean Scott" <QueenofComps@frugalgambler.biz>
To: <vpFREE@yahoogroups.com>
Sent: Thursday, March 11, 2004 11:37 AM
Subject: Re: [vpFREE] Re: Taxes on Gambling

<<I don't like the game because its too volatile for my taste. Maybe one

of

the math people can say. Since hitting the royal mean's a W-2G and taxes,
does that make it a negative game?>>

Repeat after me, everyone: Whether you get a W-2G or not, this factor has
NO bearing on how much you are REQUIRED pay in taxes on your gambling.

(I know, I know - most people who have no paperwork about their gambling,

do

not mention it to the IRS - and the chance of getting "caught" is very
slight. But you should always remember that if it comes up in an audit,

you

will probably owe money, including penalties!!! And if you have even one
W2G, the IRS will very likely take the position that you probably have had
other sessions when you won. Don't want to be an alarmist here - but the
IRS is looking at gambling issues more closely now because of the spread

of

casinos. The only reason they don't "catch" more non-compliers now is the
lack of staff - and the fact that they do figure that most people DO have
net losses rather than net wins.)

________________________________________
Jean $�ott - Go to http://www.FrugalGambler.biz
for VP software and strategy cards; "frugal" books;
and the NEW "Tax Help for the Frugal Gambler."

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