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#1
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The key to getting online poker legalized
Let's be honest - there is a FAR greater chance online poker will be legalized if there is a way states and the US government can get direct tax revenues off it (beyond income tax on winnings). Fairness arguments will carry us only so far. We need to get greed on our side, and there is more than enough slush in the system to pay hefty taxes.
But how can things be structured to allow such tax revenues? The very factors that make it playable despite the law make it hard to tax. Kentucky can't pass a law that all online players in Kentucky have to pay a tax, or that Party Poker has to pay a tax proportionate to Kentucky dollars spent. So how can government tax online poker, if legalized. One argument is that if it were legal, US-based companies could enter the market, maybe take it over from PP and thus pay corporate income tax on all that rake. But I doubt that argument by itself will be enough - benefits are too far in the future and too uncertain in amount. So how could state and federal governemnts tax online poker? |
#2
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Re: The key to getting online poker legalized
Ummm... they already do through income tax. I think that gives the government more than its fair share.
On a related note, you're a democrat, right? |
#3
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Re: The key to getting online poker legalized
Ummm ... I don't think offshore companies like Party Poker pay the US anything in income taxes.
On a related note, considering the intelligence of your reply, you're a republican right? |
#4
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Re: The key to getting online poker legalized
Ummm...you pay income tax on your winnings, right. I think that is what his post implied. That as a law abiding citizen who makes money playing poker (income), the US gov gets a cut. If it were legalized and regulated, the gov could more easily get records of winnings/losses for calculating income tax an individual owes. Take the political slander to the politics forum.
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#5
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Re: The key to getting online poker legalized
Actually I'm a libertarian. As such, I hate like hell that I have beg and scheme and compromise to get governemnt out of an area that they have no moral right to be involved in. But I'm a practical libertarian, so I'm willing to do what it takes.
Private income tax isn't enough to make them legalize it, IMO (hence the phrase in my original post "beyond income tax on winnings"), since winners owe that anyway. If that were the only incentive, I think the argument would win that its better to direct gambling to b&m casinos where tax can be collected. |
#6
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Re: The key to getting online poker legalized
I just don't think that just paying an additional personal or corporate tax on winnings or profits would sway the political powers that be to legalize online gambling. They hear too many sob stories about people who lost it all and ruined there lives by gambling from organizations like GA. They don't hear about all of the good things (including paying their salaries) that come from us already paying our gambling taxes.
There are additional taxes on alcohol and tobacco, and they ARE legal. But I don't think that additional tax revenue is the reason. I believe that the large tobacco and alcohol lobbyists have a great deal to do with it. Online poker players do not have a collective that speaks for our cause. In short, as individuals we have little clout. From a corporate perspective, why would I, as a business owner, set up shop in a country where I would be taxed significantly more than I would anywhere else in the world just because I am doing business there? I certainly do not have an transportation costs, as my product can be "shipped" across the internet for almost nothing. So what does it matter where I am located? Relocating to the US would only hurt my business. |
#7
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Re: The key to getting online poker legalized
to be legalized, the government would probably tax the casinos as well... don't know if that's the right wording, but the casinos would pay the government. I believe this is how all the NV casinos do it (which is why there is no state tax)... Don't know where I heard it from and I can't believe it to NOT be true, but I believe US casinos are trying to get online casinos legal and regulated. I would assume how the online casino is taxed or whatever would be mainly based on how a B&M casino is taxed
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#8
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Re: The key to getting online poker legalized
[ QUOTE ]
to be legalized, the government would probably tax the casinos as well... don't know if that's the right wording, but the casinos would pay the government. I believe this is how all the NV casinos do it (which is why there is no state tax)... Don't know where I heard it from and I can't believe it to NOT be true, but I believe US casinos are trying to get online casinos legal and regulated. I would assume how the online casino is taxed or whatever would be mainly based on how a B&M casino is taxed [/ QUOTE ] Yeah, the government wouldn't be able to tax casinos/poker rooms that are based in other countries afaik, but they'd make a killing from American owned/operated/regulated sites. Of course our B&M casinos would love to offer their poker & games to the public via the internet, but I really don't think this will happen in the forseeable future. |
#9
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Re: The key to getting online poker legalized
Why would a online room move to the U.S. to pay a ton of tax?
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#10
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Re: The key to getting online poker legalized
[ QUOTE ]
Why would a online room move to the U.S. to pay a ton of tax? [/ QUOTE ] I don't think that's what he's saying. He was thinking that legalizing it will encourage American entities already within the U.S. to start up online poker rooms. Your question could be phrased why would ANY company in ANY market want to move to the U.S. No one does and companies move outside the U.S. for many more reasons than tax avoidance. |
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