Online gaming taxes and the future

Here is an interesting article with regards to taxes paid by poker players playing online in NV.

http://www.reviewjournal.com/business/winning-online-poker-players-must-confront-paying-taxes

Apart from the article being interesting, I foud myself asking a few other questions. This will also very much affect other states and how they decide to handle online gaming. It would make sense from a state/federal perspective to regulate online gaming because all taxable income derived from gaming can clearly be tracked and has to be reported, no matter where it was earned.
Will this not negatively affect the revenues though? If you knew that the IRS had a window into your gambling world, would you keep on playing in that world?

I would imagine most people are afraid of declaring their earnings if they are indeed positive expectation players (for the most part poker players)?

Do you think there are ways and means around declaring your earnings from online wagers?

If you get a 1099 or W-2, you're paying taxes. I imagine most online casinos frown upon multiple accounts and take your SSN anyways.

Additionally, you're talking potential tax fraud on a public forum...

So, no. No way around it.

Quote: TerribleTom

If you get a 1099 or W-2, you're paying taxes. I imagine most online casinos frown upon multiple accounts and take your SSN anyways.

Additionally, you're talking potential tax fraud on a public forum...

So, no. No way around it.

That is exactly why I thought the states would be silly not to want to regulate it.....it is trackable, traceable and tax money in the bank.

It will turn some positive plays into negative plays unfortunately. Run good on something one year and get killed on taxes. Next year comes and you get crushed. You would have had a win over all, if you didn't have to pay on the over winning one year, and the over losing the next year.

I don't want to turn this into a craps/DI thread. But, I have thought about that when it comes to well known supposed DI's. The variance is huge there should be some winning years and some losing years. Since the edge is so small, how is it, if they properly report taxes ( some guys write about all the wins and losses they have publicly) How dose this not take away from any supposed advantage they might have?