vpFREE2 Forums

Online gambling --Watch Out!!!

There has been a lot of discussion on this subject & its legalities.

Legal or not, we should all remember that gambling is about evaluating risk.
In Nevada & AC, you know the approximate paybacks for each type of game from
Keno to BJ & that there is a 100% chance of being paid.

In online gambling, two additional variables are introduced:

--Are the games programmed to be random? How can you be sure? How do you
evaluate this risk?
--Will you get paid if you win? How can you be sure? How do you evaluate this
risk?

Word of mouth is the normal way most people have of verifying (?) whether or
not something is good or smells fishy but that's what happens in a lot of
Ponzi schemes where the early winners are paid off & they spread the word to
a lot of suckers who also might get paid off. Where this all starts to
collapse is when those payoffs start slowing down & getting behind. What
makes this hard to detect is that inveterate gamblers want to make money
transfers as convenient as possible so they leave their winnings on account &
don't notice the slowdowns.

Yeah there probably are honest online casinos out there. But picking out the
honest ones from the ones who will skip or go out of business is a 1 in 5
shot (remember reading somewhere that 80% are gone after one year - maybe
recent issue of Casino Player).

If you still insist on putting down a bet & trying to beat this logarithmic
progression, then you're a real gambler & should be welcome in any casino.

My real objection to online gambling is the burden it puts on the rest of us.
What burden you say? Money transactions are done by credit card. Often it's
on credit backed up by future income or it's money that cannot afford to be
lost. In either case, it often becomes uncollectible due to:
--Losses
--Casinos not paying off winnings or going out of business
--Duplicate billings by casinos
--Just can't pay

Credit card companies then start to nickel & dime us with fees & up interest
rates to subsidize the losses from these deadbeats.

Some of the credit card companies are no longer accepting charges to known
online casinos. I think this is driven not by whether it's legal or not but
more by the rising volume of "invalid charge" or "disputed charge" claims
from cardholders. In a falling economy, this is just going to get worse.

Frankly, I think online gambling should be legalized but only if you gamble
by depositing real cash & our DAs shouldn't waste any time if people get
burned by offshore fly-by-nighters.

OK, enough soapbox & snake oil debunking. I just had to say something.

[Non-text portions of this message have been removed]

I totally agree it should be legalized. I doubt it will happen
because the US Govt has not figured out a way to tax any winnings
over $1200.00. Other countries don't have this problem because they
don't usually tax "luck" which they consider gambling as just like
the lottery. I will add that the $1200.00 rule is outdated as well.
Nowadays, people make more money - bet higher and $1200 can be
reached easily. Anyone playing a $2 machine or higher ends up
getting a tax form just for a 4 of a kind on certain machines. I
think it should be raised to at least $1500.00.
Just my thoughts on the subject.

--- In vpFREE@y..., TedChee@a... wrote:

There has been a lot of discussion on this subject & its

legalities.

Legal or not, we should all remember that gambling is about

evaluating risk.

In Nevada & AC, you know the approximate paybacks for each type of

game from

Keno to BJ & that there is a 100% chance of being paid.

In online gambling, two additional variables are introduced:

--Are the games programmed to be random? How can you be sure? How

do you

evaluate this risk?
--Will you get paid if you win? How can you be sure? How do you

evaluate this

risk?

Word of mouth is the normal way most people have of verifying (?)

whether or

not something is good or smells fishy but that's what happens in a

lot of

Ponzi schemes where the early winners are paid off & they spread

the word to

a lot of suckers who also might get paid off. Where this all starts

to

collapse is when those payoffs start slowing down & getting behind.

What

makes this hard to detect is that inveterate gamblers want to make

money

transfers as convenient as possible so they leave their winnings on

account &

don't notice the slowdowns.

Yeah there probably are honest online casinos out there. But

picking out the

honest ones from the ones who will skip or go out of business is a

1 in 5

shot (remember reading somewhere that 80% are gone after one year -

maybe

recent issue of Casino Player).

If you still insist on putting down a bet & trying to beat this

logarithmic

progression, then you're a real gambler & should be welcome in any

casino.

My real objection to online gambling is the burden it puts on the

rest of us.

What burden you say? Money transactions are done by credit card.

Often it's

on credit backed up by future income or it's money that cannot

afford to be

lost. In either case, it often becomes uncollectible due to:
--Losses
--Casinos not paying off winnings or going out of business
--Duplicate billings by casinos
--Just can't pay

Credit card companies then start to nickel & dime us with fees & up

interest

rates to subsidize the losses from these deadbeats.

Some of the credit card companies are no longer accepting charges

to known

online casinos. I think this is driven not by whether it's legal or

not but

more by the rising volume of "invalid charge" or "disputed charge"

claims

from cardholders. In a falling economy, this is just going to get

worse.

Frankly, I think online gambling should be legalized but only if

you gamble

by depositing real cash & our DAs shouldn't waste any time if

people get

burned by offshore fly-by-nighters.

OK, enough soapbox & snake oil debunking. I just had to say

something.

···

[Non-text portions of this message have been removed]

missdeuces wrote:

I doubt it will happen (legalization) because the US Govt has not
figured out a way to tax any winnings over $1200.00 ... I will add
that the $1200.00 rule is outdated as well.

A reminder: All gambling winning are taxable, irrespective of amount.
It's just that only individual wins of $1200 or more are
informationally reported to the IRS.

What's assinine is that the government only allows you to offset
losses against winnings if you file a "long form" insasmuch as they
can only be deducted as itemized deductions on a Schedule A.

This is a rule that makes tax cheats out of most short-form filers who
gamble (including a lot of pensioned grandmothers) and angry taxpayers
out of those who manage large individual wins reported on a W2-G.

- Harry

You are absolutely right that all winnings are taxable...What I was
referring to was the amount required for a W2G. Some of mine are for
$1250 or $1325.00. That is irritating.
However, I keep very detailed logs and everything is declared. So
far - I have enough losses to offset my winnings - :frowning:
  
--- In vpFREE@y..., "Harry Porter" <harry.porter@v...> wrote:

missdeuces wrote:
> I doubt it will happen (legalization) because the US Govt has not
> figured out a way to tax any winnings over $1200.00 ... I will

add

> that the $1200.00 rule is outdated as well.

A reminder: All gambling winning are taxable, irrespective of

amount.

It's just that only individual wins of $1200 or more are
informationally reported to the IRS.

What's assinine is that the government only allows you to offset
losses against winnings if you file a "long form" insasmuch as they
can only be deducted as itemized deductions on a Schedule A.

This is a rule that makes tax cheats out of most short-form filers

who

gamble (including a lot of pensioned grandmothers) and angry

taxpayers

···

out of those who manage large individual wins reported on a W2-G.

- Harry