Future Bets / IRS Reporting

Holybull · #1 01-16-2003, 12:54 PM

Suppose I'll be placing some future bets for the Kentucky Derby on a horse listed @ 100-1. From what I understand, all cash transactions of $10,000 and greater must be reported to the IRS. Would the books have a problem with me making several $90 bets, so if it won each transaction would be only $9,090? And if it did win, could I cash each ticket separately, or would I have to send my wife, unlce, etc in to cash them? Also, would Caesar's or Bally's accept a wager of $500-$1000 @ 100-1?

Thanks for any help.

Holybull · #2 01-16-2003, 03:32 PM

Bump.

Wildbill · #3 01-17-2003, 04:39 AM

A lot of books, from what I understand, don't even take future bets anymore on the Derby, they just participate in the pari-mutuel future betting run by Churchill. If I heard right, they were asked "nicely" to stop competing with Churchill for business and they were glad to offload the liability.

As for your structuring of bets, if someone at the IRS or even the book figured out what you were doing you would be in trouble. The IRS would say you were "structuring" your transactions to avoid the reporting requirement. As it is the book is required to check your ID and write down your info when you cash your ticket, its just they aren't required to send it in. Those records are supposed to be kept from the IRS if indeed you do nothing else in the casino for the day, but the records are there and you have to wonder if the paper trail doesn't catch up to you.

Ray Zee · #4 01-17-2003, 11:36 PM

the books used to be willing to give out chips. i dont know if they still do. in any event you can deduct an equal amount of losses from the winnings as long as you have a record of it. should not be an issue. and anyone with enough to bet as much as you are talking would be a fool not to have his money available for investments.