The key to getting online poker legalized

memphis57 · #1 07-05-2005, 07:16 AM

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?

ddollevoet · #2 07-05-2005, 08:08 AM

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?

cardcounter0 · #3 07-05-2005, 08:25 AM

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?

pokerrookie · #4 07-05-2005, 09:38 AM

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.

skoal2k4 · #5 07-05-2005, 10:08 AM

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

jon_keck · #6 07-05-2005, 11:00 AM

[ 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.

Uglyowl · #7 07-05-2005, 11:09 AM

Why would a online room move to the U.S. to pay a ton of tax?

Schwartzy61 · #8 07-05-2005, 11:15 AM

[ 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.

BradleyT · #9 07-05-2005, 11:21 AM

What the gov't should do is this.

Make it legal for U.S. citizens to gamble at U.S. based online gaming sites and put ISP blocks on foreign gaming destinations. That way it guarantees itself the revenues it's looking for both by taxing the casinos and taxing the players.

Where would U.S. players feel safe gambling, CasinoGoogle or some skanky foreign country casino?

memphis57 · #10 07-05-2005, 11:50 AM

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.