Man to bet all on Vegas roulette spin
http://www.cnn.com/2004/SHOWBIZ/TV/04/08/people.bet.reut/
<a href="http://www.cnn.com/2004/SHOWBIZ/TV/04/08/people.bet.reut/">
http://www.cnn.com/2004/SHOWBIZ/TV/04/08/people.bet.reut/</a>
Double Up
vpFREE wrote:
Man to bet all on Vegas roulette spin
According to the article, this guy is not being paid by the TV network; unless he can somehow make some money off of what is likely to be some fairly short-lived notoriety, this guy is _really_ making a sucker-bet. Aside from the fact that the bet is not 50/50 due to the zero and double-zero, the likely tax consequences also contribute a substantial shift in the odds of the bet. It appears that he will be betting about $135,000.00 -- his entire worth -- in a single bet. Let's assume that his combined taxes are 20% of that amount (I don't know whether social security taxes would apply, but I'm assuming they would not), and let's also assume that he won't have significant losses to offset any winnings. If he loses this bet, he won't be able to offset his loss against any other income that he has except for any gambling winnings, which probably won't amount to much unless he has already some, because he won't have anything left to gamble with. So, if we assume that he is playing a fair double-zero wheel, with no other gambling wins or losses, bets $135,000.00, faces combined taxes of 20% of his winnings, and quits gambling after this bet (either because he has no further stake, or to preserve his full winnings), then I figure that his after-taxes ER is really 18/20*.8= 0.72, so statistically he is throwing away $37,800.00 with this bet.
Cheers.
Bill Velek
Aside from the fact that the bet is not 50/50 due to the zero
and double-zero, the likely tax consequences also contribute
a substantial shift in the odds of the bet. It appears that
he will be betting about $135,000.00 -- his entire worth --
in a single bet. Let's assume that his combined taxes are
20% of that amount (I don't know whether social security
taxes would apply, but I'm assuming they would not), and
let's also assume that he won't have significant losses to
offset any winnings. If he loses this bet, he won't be able
to offset his loss against any other income that he has
except for any gambling winnings, which probably won't
amount to much unless he has already some, because he won't
have anything left to gamble with. So, if we assume that he
is playing a fair double-zero wheel, with no other gambling
wins or losses, bets $135,000.00, faces combined taxes of 20%
of his winnings, and quits gambling after this bet (either
because he has no further stake, or to preserve his full
winnings), then I figure that his after-taxes ER is really
18/20*.8= 0.72, so statistically he is throwing away
$37,800.00 with this bet.
UK residents pay no taxes on gambling winnings there or in the US.
I believe that he is from Great Britain. Not concerned with US taxes
ยทยทยท
On Fri, 09 Apr 2004 04:02:39 -0500, you wrote:
vpFREE wrote:
Man to bet all on Vegas roulette spin
According to the article, this guy is not being paid by the TV network;
unless he can somehow make some money off of what is likely to be some
fairly short-lived notoriety, this guy is _really_ making a sucker-bet.
Aside from the fact that the bet is not 50/50 due to the zero and
double-zero, the likely tax consequences also contribute a substantial
shift in the odds of the bet. It appears that he will be betting about
$135,000.00 -- his entire worth -- in a single bet. Let's assume that
his combined taxes are 20% of that amount (I don't know whether social
security taxes would apply, but I'm assuming they would not), and let's
also assume that he won't have significant losses to offset any
winnings. If he loses this bet, he won't be able to offset his loss
against any other income that he has except for any gambling winnings,
which probably won't amount to much unless he has already some, because
he won't have anything left to gamble with. So, if we assume that he is
playing a fair double-zero wheel, with no other gambling wins or losses,
bets $135,000.00, faces combined taxes of 20% of his winnings, and quits
gambling after this bet (either because he has no further stake, or to
preserve his full winnings), then I figure that his after-taxes ER is
really 18/20*.8= 0.72, so statistically he is throwing away $37,800.00
with this bet.Cheers.
Bill Velek
vpFREE Links: http://tinyurl.com/v9qq
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Richard Brodie wrote:
UK residents pay no taxes on gambling winnings there or in the US.
Holy Cow! That's great. What are the vp opportunities like?
Bill Velek