1. #1
    beerman2619
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    Will online gambling be legalized this year?

    Ever since a 2006 law effectively outlawed online gambling, they’ve been marginalized, either turning to pretend-money alternatives, quitting altogether, or relying on dicey workarounds to avoid the long arm of the law. But rumors of an upcoming bipartisan effort to legalize the industry -- and bring it under the watchful eye of the federal government -- have given online gamblers new hope.

    Strictly speaking, online gambling isn’t actually illegal under federal law, although several states (such as New York, Washington, and Nevada) have banned it for their residents. Instead, the 2006 federal law (bizarrely shoehorned into a bill focusing on tightening security at U.S. seaports) prevents businesses from accepting ************, wire transfers, checks, and other transactions if they were to be used in “unlawful Internet gambling.”

    Broken and ineffective, the law hasn’t entirely escaped the attention of politicians -- notably Barney Frank, Democratic House Representative for Massachusetts, who’s repeatedly tried to legalize (and, naturally, tax) online gambling over the last few years. Former Senate Majority Leader Harry Reid was working to slip a bill through in December’s lame-duck session, too, but to no avail.

    All that has online gambling fans looking to the GOP for help -- and they’re finding it at the door of California representative John Campbell, a Republican of a rather more libertarian bent than Bachus. Campbell is reportedly preparing to introduce a new bill later this year along the lines of Frank’s most recent effort, which successfully passed the House Financial Services Committee in July. Campbell is said to have Frank on board as a co-sponsor. Could online gambling’s fans -- and the businesses that are ready to serve them -- finally be staring at a winning hand?
    Their first hurdle’s going to be a high one. Frank’s last bill indeed cleared the Finance Committee without undue hardship, but the aftershocks of November’s elections included some changes in that committee’s makeup. One major change, in fact: it has a new chairman.
    As of last month, out went gambling-friendly Barney Frank -- and in came none other than Spencer Bachus. Bipartisan or not, any bill that relaxes restrictions on Internet gambling is likely to have a harder time getting past the committee stage this year.
    Even if it does, there’s still a long road between there and a vote. But above all else, the new Congress has a clear mandate from voters: reduce the deficit. Anything that produces extra revenue -- and has the potential to create jobs for out-of-work Americans -- is likely to be on the table. Campbell is expected to show his hand in the next few weeks; time will tell whether he’ll come up trumps for online gambling’s many fans.

  2. #2
    oiler
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    well they are having alot of conversation about it now that we are in so much debt and with all the tax money they would get,it would definetly help our deficit

  3. #3
    Stallion
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    No, not for a long time.

  4. #4
    beerman2619
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    I agree Oiler

  5. #5
    koivu99
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    Why did they make it illegal in the first place? If you can gamble responsibly the gov't shouldn't place restrictions on fan entertainment in sports.

  6. #6
    Smoke
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    online gambling will be legal on 4/20/12

    Mark ur fukkkin calendars

  7. #7
    FuzzyDunlop
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    Threads like this spur the notion that it is illegal to gamble online at a federal level. The only thing the UIGEA does is make it illegal for a bank to process payments from known gambling sources.

  8. #8
    beerman2619
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    Yeah good point Fuzzy.

  9. #9
    NOYEBOY
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    The argument will have to go before the Supreme Court, that is the only way I see it being overturned as unconstitutional. No different than being able to buy lottery tickets.

  10. #10
    nyed1010
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    if ******* obamacare(something that mandates an individual to buy insurance for the sake of their own ******* health) is deemed unconstitutional by a federal judge, then the government telling us what not to do with our own hard earned money should be deemed unconstitutional to the highest degree.

  11. #11
    MMAchicka
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    Really... wow that would make life so easy... too easy

  12. #12
    boondoggle
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    I wouldn't worry about the legality as much as I would worry about the computer programs that are already beating the lower limits....

  13. #13
    ehp6737
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    Quote Originally Posted by FuzzyDunlop View Post
    Threads like this spur the notion that it is illegal to gamble online at a federal level. The only thing the UIGEA does is make it illegal for a bank to process payments from known gambling sources.
    While your statement is true, the inability, or atleast severe hampering of the ability for funds to change hands between the customer and the sportsbook is designed to have the same effect as if the act of gambling itself was illegal. It is the same as if say the government wanted to make driving a car illegal, but they knew they didnt have the resources to police it. So what would you do? You would pass a law making it illegal for gas stations to sell gas, in effect rendering the cars useless. It would be easier to police a few thousand gas stations as opposed to a few million cars, or in this case, to police a handful of financial institutions as opposed to millions of gamblers. Only if, and when, they can devise a solution to enforcing tax collection from "John Q Gambler" and the profits he made while sitting in his lazyboy eating a bag of doritos dressed in his bathrobe will gambling become legal. It's the same and only reason marijuana isnt legal....they dont know how they can enforce tax collection.

  14. #14
    doublej95
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    doubt it but it should be legal.

  15. #15
    FuzzyDunlop
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    Quote Originally Posted by ehp6737 View Post
    While your statement is true, the inability, or atleast severe hampering of the ability for funds to change hands between the customer and the sportsbook is designed to have the same effect as if the act of gambling itself was illegal. It is the same as if say the government wanted to make driving a car illegal, but they knew they didnt have the resources to police it. So what would you do? You would pass a law making it illegal for gas stations to sell gas, in effect rendering the cars useless. It would be easier to police a few thousand gas stations as opposed to a few million cars, or in this case, to police a handful of financial institutions as opposed to millions of gamblers. Only if, and when, they can devise a solution to enforcing tax collection from "John Q Gambler" and the profits he made while sitting in his lazyboy eating a bag of doritos dressed in his bathrobe will gambling become legal. It's the same and only reason marijuana isnt legal....they dont know how they can enforce tax collection.
    Marijuana isn't legal because of the billions in lobby money that the alcohol industry has spent since the 1920s, there are still a couple of states with active Marijuana Tax Stamps still on the books, where possession is illegal, Kansas being one.

    http://www.ksrevenue.org/perstaxtypesdrug.htm

    The IRS has the agents and means to enforce tax collection through audits, ** and ** gladly fork over all transfer information under the guise of the Patriot Act. There is nothing illegal about gambling online from a players standpoint, so there really isn't any reason why a gambler should not be claiming with 100% accuracy what they make from it. I've been playing online poker since 2002 and this law has done nothing except make a few minor transitions in how you get paid, most notably Neteller. The one major change from the poker side that myself and a few others made a boatload on from 2007-2010 was that sites were no longer allowed to directly buy players into live US based events, most notably the WSOP.

  16. #16
    geebert74
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    It's all illigeal because the goverment cannot tax you on it... Nothing is reported to the IRS. You would have to have these books have an open communication with the IRS and it would cost these books way too much money just to stay in business... It will never happen for as long as I am alive.

  17. #17
    FuzzyDunlop
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    Quote Originally Posted by geebert74 View Post
    It's all illigeal because the goverment cannot tax you on it... Nothing is reported to the IRS. You would have to have these books have an open communication with the IRS and it would cost these books way too much money just to stay in business... It will never happen for as long as I am alive.

  18. #18
    jjgold
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    Sports betting will never be legal online

  19. #19
    ehp6737
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    Quote Originally Posted by FuzzyDunlop View Post
    Marijuana isn't legal because of the billions in lobby money that the alcohol industry has spent since the 1920s, there are still a couple of states with active Marijuana Tax Stamps still on the books, where possession is illegal, Kansas being one.

    http://www.ksrevenue.org/perstaxtypesdrug.htm

    The IRS has the agents and means to enforce tax collection through audits, ** and ** gladly fork over all transfer information under the guise of the Patriot Act. There is nothing illegal about gambling online from a players standpoint, so there really isn't any reason why a gambler should not be claiming with 100% accuracy what they make from it. I've been playing online poker since 2002 and this law has done nothing except make a few minor transitions in how you get paid, most notably Neteller. The one major change from the poker side that myself and a few others made a boatload on from 2007-2010 was that sites were no longer allowed to directly buy players into live US based events, most notably the WSOP.
    If you think the IRS, or any government agency for that matter, has the manpower and resources to take on anymore of a workoad than they already have you are very incorrect sir. But for argument sake lets say they can. How in the hell would the IRS know who to audit from online gambling? You do realize a sportsbook in Costa rica is not sending the IRS a W-2G on your behalf? You do realize if 5dimes sends me a *********** for my w/d and I go to a check cashing place instead of my bank that money is free and clear? And I'm assuming they will have to audit everyone who has taken a sportsbook payout right? I'm sure they can handle another couple hundred thousand audits next year. I'm sure the cost of that enforcement will outweigh the revenue generated from these audits You think marijuana isnt legal because or big tobacco? You do realize that though both marijuana and tobacco are generally consumed by smoking, that is where their similiarities cease? They serve two completely different purposes and cater to two completely different users. Obviously you've never been a user of either otherwise you would know that and know they are not competitors.

  20. #20
    FuzzyDunlop
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    Quote Originally Posted by ehp6737 View Post
    How in the hell would the IRS know who to audit from online gambling? You do realize a sportsbook in Costa rica is not sending the IRS a W-2G on your behalf? You do realize if 5dimes sends me a *********** for my w/d and I go to a check cashing place instead of my bank that money is free and clear? And I'm assuming they will have to audit everyone who has taken a sportsbook payout right? I'm sure they can handle another couple hundred thousand audits next year. I'm sure the cost of that enforcement will outweigh the revenue generated from these audits You think marijuana isnt legal because or big tobacco? You do realize that though both marijuana and tobacco are generally consumed by smoking, that is where their similiarities cease? They serve two completely different purposes and cater to two completely different users. Obviously you've never been a user of either otherwise you would know that and know they are not competitors.
    *********** companies forward records to the IRS every year regarding international transfers. I never mentioned tobacco, just alcohol. Look up the inception of marijuana prohibition. Weed becomes legal, alcohol sales plummet, happening in California now.

  21. #21
    ehp6737
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    Quote Originally Posted by FuzzyDunlop View Post
    *********** companies forward records to the IRS every year regarding international transfers. I never mentioned tobacco, just alcohol. Look up the inception of marijuana prohibition. Weed becomes legal, alcohol sales plummet, happening in California now.
    My mistake, for some reason I thought I read tobacco. Just fyi...the last 2 times I recvd a "check" w/d it was actually a US postal ***********, purchased by an "agent" of the book in North America and mailed from Canada. But regardless of whether it's domestic or international, anyone can purchase money orders w/o an ID and make them out after purchased. It is never required during purchase or cashing to declare what purpose it was for. Now when it comes to large bank transfers and wires, then yes you have to use discretion. Bottom line, if the player is smart about it they wont have to claim anything.

  22. #22
    Reno Paul
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    Maybe online poker could be legalized in California fairly soon.....There's still talk going on about it.....California could sure use the revenue........As for all online sports gambling being legalized this year, I highly doubt it.

  23. #23
    GOIRISH
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    how nice would that be

  24. #24
    FuzzyDunlop
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    Quote Originally Posted by ehp6737 View Post
    Bottom line, if the player is smart about it they wont have to claim anything.
    This logic is so flawed saying best case scenario, you can probably evade paying taxes.

  25. #25
    TheLock
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    Quote Originally Posted by geebert74 View Post
    It's all illigeal because the goverment cannot tax you on it... Nothing is reported to the IRS. You would have to have these books have an open communication with the IRS and it would cost these books way too much money just to stay in business... It will never happen for as long as I am alive.

    How about claiming your sports betting winnings at tax time?

  26. #26
    floridagolfer
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    It'll happen someday, but not any time soon.

  27. #27
    gafl
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    A long time on the Federal level. California and Nevada are are possibilities on the state level. NJ just gave up the idea.

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