Re: Regulating online poker and sites by \"taxing\" the rake?
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So you want to FURTHER encourage the IRS to treat gross session wins as if they are not affected by gross losses?
Bad idea imo
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How so? If you play terrible poker, losing every hand, you'll pay zero tax. That would mean you only pay tax when you win.
Shoot, I've spent 4 years grinding limits where I more often than not pay 5% rake and yet I make money. Therefore, I don't see how paying the same 5% and then NOT paying income tax on top of that would be a bad deal for me.
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I don't know of any state that taxes gambling in the way you describe. Typically, the tax would come in the form of a percentage of the casino's win (or the casino's total rake in the case of poker), or the casino's corporate profits. The consumer never actually "sees" the tax. I don't know why it would be any different for internet gambling.
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But the consumer still needs to pay income tax. The entity that is affected the most is the poker site, since the rake they charge will be half as much as they received from American players before.
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