How much Tax Revenue if it was legal?

[alecr45]

I was thinking today, as I am sure most of you have, about the potential tax revenue the Gov. could make from legalizing internet poker. Does anyone have any information or spectulations on the amount of money the Gov. would make if they legalized internet poker?

[1p0kerboy]

3.3 billion in federal tax revenue and addition 1 billion in state tax revenue could be raised if the federal government were to regulate Internet poker.

from PPA's website

[Das Budrick]

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3.3 billion in federal tax revenue and addition 1 billion in state tax revenue could be raised if the federal government were to regulate Internet poker.

from PPA's website

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this is per year?

[jmxthievez]

a crapload more than 0

[1p0kerboy]

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this is per year?

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no this is total ever.

[1p0kerboy]

^^^^^sarcasm^^^^^

[Mondogarage]

Considering how little the PPA shares about it's own numbers and revenue, I think any hyperbolic assumptions have to be looked at a bit skeptically.

That said, the number is likely to be quite considerable per year, but the mechanism is tougher. How does the US tax multi-national tournaments, where the half the payees may be playing from Europe on a site based in Antigua, and aren't subject to US tax laws? So you can't just have the US take, say, a 3% rake off each payout.

You're supposed to take earnings, not expenditures, so you can't have the US, say, take a small cut of money going *into* a tourney pool. How do you tax ring games?

And how would federal government approval put money in state tax authorities' hands?

Don't mind me, just askin' questions.

[oober]

I was screwing around with excel. And even if they came up with a tax% on the rake only...... At a 4% tax on an avg rake of $1.00 for 5 billion hands comes to approx. $222,000,000.00...

Now of course it would probably come down to a % of the pot. Since more hands are played at smaller stakes the higher stakes.... If the avg pot over 5 billion hands was $3.00 Tax at 1% would be $166,000,000.00, 3% $500,000,000.00

There is definitely money to be made... And this is for ring game play only......

[LeeLoo]

[ QUOTE ]
I was screwing around with excel. And even if they came up with a tax% on the rake only...... At a 4% tax on an avg rake of $1.00 for 5 billion hands comes to approx. $222,000,000.00...

Now of course it would probably come down to a % of the pot. Since more hands are played at smaller stakes the higher stakes.... If the avg pot over 5 billion hands was $3.00 Tax at 1% would be $166,000,000.00, 3% $500,000,000.00

There is definitely money to be made... And this is for ring game play only......

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Would the whole rake be taxed when a large portion is paid back to affiliates. Just wondering. I have no clue about taxes.

[oober]

Who knows, but ir was just to throw out some numbers based off of est. hands played... As you can see there is a tone of money to be made... It's not a trillion, but it surely is no drop in the bucket....

I think also the number could be much higher if the site were American owned. I think there would be more consumer confidence thus higher revenue...