Anybody in the ¨Danger¨ states still playing online?

[Backspin20]

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not only do i play poker in the comfort of my own home in NY, but i watch porn, perform oral sex AND smoke pot and blow coke.

but, ya know, i may reconsider that online poker risk before playing again.

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Oral sex illegal in NY?

[Vern]

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There is legal gambling everywhere, including online, you just declare winnings and deduct losses (but have the paperork to back that up if you are audited) You just list the activity as gambling, and since it isn't illegal to play, it isn't illegal gambling anyway.

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but what if you are in a state where it is a felony to play poker online?

are you saying that you just list the activity (playing poker) as "gambling" when you do your taxes and this makes it ok since you aren't being too specific?

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I e-file, I never had to enumerate what gambling activity I earned the money at. I am not saying the states where it is a felony cannot follow up, but I doubt they will go to that effort. There are so many places to have legally gambled, the mere act of filing gambling winnings would be a poor indicator of possible illegal gambling activity.

[Vern]

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Now maybe someone who is a lawyer can clarify this part since I'm not sure where I may have heard it or the veracity -- I believe that your admission of illegal income on a tax form cannot be used to prosecute you for the crime. It is an extension of the 5th amendment right to not self-incriminate.

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That is false.

Answer

[Kazlic]

A lot of people seem to be asking how the ¨Danger State¨ list I posted came to be.

I got it from: http://www.compatiblepoker.com/usa.php

[Fishhead24]

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Umm, I've paid taxes and child support under the title of Professional Internet Gambler in the state of Wisconsin...

And since when is Wisconsin on this danger list?

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For a few years.

[Skallagrim]

The danger list is actually a danger list mostly for the sites, not the players. NY is the perfect example. NY has a probably unconsitutional law prohibiting the offering of (most) gambling services which the NY attorney general claims also applies to the internet. It has no law that says the internet gambler is committing a crime.

And many states that are not on the list should be, as far as a player is concerned. Oklahoma for example, specifically makes playing poker outside a licensed casino a misdemeanor offense. Although there are some issues with this law too (WTO for example), if OK started arresting people for online play, I would not like to be the defendant trying to avoid criminal conviction by arguing this law does not apply to the internet.

Or consider South Carolina. SC makes playing any card game for money a misdemeanor crime. Does anyone really believe a court in SC would accept the argument that the use of a computer and the interent means online texas holdem is not a "card game?"

My current professional opinion is that the better way to exclude states is to exclude states that make playing a crime, and ignore states that only (many do both) make offering the service a crime. This produces a far different list. Which I will share with anyone for a small fee [img]/images/graemlins/wink.gif[/img]. Or you can do the research yourself (for the most part) here:
http://www.gambling-law-us.com/State-Law-Summary/

Skallagrim

[PLO8FaceKilla]

the [censored] jokes might have more relevance and be funny if you got taxed for blowjobs

[PLO8FaceKilla]

also, probably a question that's been asked a million times but i don't know where to find the answer....... so please bear with me.....

1)say i end up making 10k this year online.... do i have to pay taxes even if i don't withdraw it?
2)if i do have to pay taxes on it and then the next year i make 20K and cash all of it out im only going to be taxed on 20k for that 2nd year right? (even tho i took out 30k total)

i guess what im curious about is taxes whether you withdraw or not and if there are any problems with this....

thanks in advance

[jasonfish11]

Here is an idea. I bet Felony tax fraud will be worse than felony poker playing. If you get audited DONT LIE tell them you made it online and pray for a good judge. If you are trying to get a job and they see a felony for tax fraud they are probably not going to hire you but felony for playing poker? If I were hiring you I wouldnt care unless I think you might have a gamboling problem.

And yes a W2G you dont specify where it came from you just put in the winnings and loses. I would recommend you put in your winnings and loses even if you are in a "danger" state. If you get audited for something else there are ways they can tell if you didnt report gamboling income.

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Now maybe someone who is a lawyer can clarify this part since I'm not sure where I may have heard it or the veracity -- I believe that your admission of illegal income on a tax form cannot be used to prosecute you for the crime. It is an extension of the 5th amendment right to not self-incriminate.

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I am not a lawyer but Im an accountant. Its been a while since tax classes but I do taxes each year. I believe this is true with one exception. If you are a drug runner I believe the IRS is obligated to tell the proper authorities *warning this could be out of date