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Online gambling might hurt players and casinos23 April 2013
I guess you heard that New Jersey is going the route of legalizing online gambling for a 10-year trial with the Atlantic City casinos. Politics as usual want to suck as much money out of the people. I see several problems at least. This is making it too easy to get every poor Tom, Dick and Harry that has access to a computer to gamble. The more money that is gambled gives the state more revenue to spend. Just like New Jersey did in the 1970s income tax and sales tax in the 1980s to fund education and aid senior citizen to keep property taxes low. That turned out to be a joke.
The other problem I see is the government will have records of who gambles and how much you win or lose. And especially how much you win to tax you on income. We all know most people that win amounts that are under the radar screen do not report their winnings, unless you are a professional gambler where you are required I believe to keep records for tax purposes.
If I'm willing to take the risk to bet my money at a game to make more money is no concern of the government which is the way I feel. It's my money I earned it and outsmarted the casinos. Another thing is you can only deduct loses from the winnings. Can't deduct losses from regular wages. Let's say you win several thousands online and it is reported to the IRS in one year but in the next new year you have many losses or lose it all. None can be deducted against the previous year. The tax code is totally unfair.
Here can be a big problem for anyone who won thousands online and the following year loses all of it and doesn't have the money to pay Uncle Sam. Of course it depends on what percentage of your winnings to be withheld. But if all those small amounts add up substantially people could fall into this trap and lose everything because of the penalties and a 12 percent interest rate charge compounded.
The other problem I see is online gambling will keep people home and gamble from their home instead of going to the casino. This can cause low attendance and lost of revenues for many businesses within the casinos such as restaurants and other shopping stores. I may be too pessimistic but I think the casinos need the tourist and the gamblers to experience the excitement of the many games presented. Only the future will tell us that this is insanity on from government’s greed.
Interested to hear your thoughts.
For your letter I am sending you a copy of my book "The Virgin Kiss."
All the best in and out of the casinos!
Frank Scoblete's new book is "Everything Casino Poker: Get the Edge at Video Poker, Texas Hold'em, Omaha Hi-Lo and Pai Gow Poker!"
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