Dumb Politicians can't wait to F- up interent gambling

[miff]

\"Lawmakers are proposing a tax on Internet gambling revenues to help the state’s racetracks. Should federal law be changed to allow Internet gambling, New Jersey would impose a state tax on it and send $30 million a year from the new tax to the horse racing industry, which has battled the casinos for state support for years.

The new tax money would replace the $30 million a year casinos reluctantly handed over to the tracks in return for the state banning slot machines from the tracks. The racing industry has long wanted slots, saying the gambling machines are the only way it can survive against racetrack casinos in neighboring Pennsylvania, New York, and Delaware\"


....before racing could even get a boost by Federal regulation, the clueless politicians have hit the players with a pre emptive strike(another form of takeout)

[jbelfior]

Miff:

I live in New Jersey. They would tax the air we breathe if they could. Areas where carcinogen levels were above acceptable levels would be eligible for year-end rebates.


Good Luck,
Joe B.

[HP]

If they are taxing Internet gambling, but not Internet gambling on HORSE RACING, it really wouldn\'t amount to another takeout, would it?  I\'m not familiar with the proposal but would it just be on poker, football, etc. or would it include a tax on Internet sites that allow you to bet on HORSE RACING?  

I\'ve heard this debated for quite some time and amongst a few lawyers I know as well, and the only issue is when they will get around to enforcing all the parts of the Wire Act (federal law) that are not currently being enforced.  Just about the only reason to allow Internet gambling (which could easily be stopped by certain provisions of the Wire Act) is to eventually tax it.  

HP

[Boscar Obarra]

Folks move 100\'s of billions everyday on the net gambling on stocks and commodities.

 99.9% of the trades having as much social utility as betting on a ball game or a horse race.

 Can you say hypocrites?

[HP]

Boscar - that is not a valid comparison.  While I agree with your \"social utility\" comment...what you call \"gambling\" on stocks and commodities is...taxed.  

At the end of the year you have to pay capital gains tax on those trades.  So it really is not hypocritical on the count you describe.  Stocks and commodities guys are already paying taxes.  

If you win enough at the track you have to sign an IRS ticket and pay the tax (of course you can offset some with losses).  Why do you want these online poker guys to get a better deal than YOU?  

HP

[miff]

HP,

Both NY and NJ(don\'t know about other states) are looking to \"tax\" any future wages made via AWD\'s.How they would police and collect from out of State AWD\'s is unimaginable.

The only exemptions planned are the local OTB/NYRA phone accounts.This will not happen unless the current federal law on interstate gambling is amended(being looked at forever)

The above is under review in NY and NJ relative to the OTB mess in NY and the future of horse racing in NJ.

I\'m laying 3-1 both states F it up!


Mike

[Boscar Obarra]

I should have read the original post more carefully. I appear to have responded to a point that was not made ;-).

 As far as taxing is concerned, no one is taxed harder than the horse playing community via the confiscatory takeout.

[HP]

Miff - Thanks for the clarification.  I know when I call in bets on my NYC OTB account they ask me what state I\'m in...as in...where am I making the call from.  It would be relatively simple to \"police\" it if you made rules establishing which state was entitled to collect the tax - state where the account holder resides, or state where you\'re making the call from (I would say the former would be the way to go!).

Boscar - no doubt horse racing fans get it in the neck.  And other places.  HP

[miff]

HP,

Also mainly use NYC OTB phone account.Have never been asked what state I live in and thought you had to be a NY State resident to have an NYC OTB account which now sounds wrong.

If you are following the fiasco with the NYC OTB restructuring, now the harness guys and one State Senator are balking at the  reorganization plan. The present Governor, a lame duck, walked away from it and incoming Andrew Cuomo can\'t spell horse but will probably do the politically correct thing.


Mike

[HP]

Originally I had the account as a New York resident.  Moved to Jersey (oy) and once I went to collect and had to provide drivers license.  They changed the address on the account at that point and I guess they have a code when you call in so they ask what state you\'re in when placing the bet.  I believe this process is what enables them to allow NJ residents to have these accounts, because they can tell NJ that they are indeed going to collect any tax on wagers made that generate an IRS ticket for a NJ resident.  

Not that I\'ve had too many of those lately!  HP