Man, I’m a much bigger fan of writing posts about a sick beat, or 4 guys making 2 million in 2 months (i still don’t think they’ll do it….) but this whole legalization of online poker in the wings is a huge deal, and has wide ranging repercussions.
If the states does “legalize” online gaming, there is a huge chance it will be limited in some way, and it will for sure have a taxation element on the deposit side, and maybe on the cash out side (a-la a brick and mortar casino). The taxation element alone may make playing online as a profession in the states a thing of the past, as it would totally neutralize the profits you could make. I’ve even heard rumors of the Government taxing poker winnings on the website, and then taxing the player on their income taxes. Game of skill, right?
Recently, however the US has shown why regulation and legalization of Internet gambling is not needed. It’s not needed because they are making tons of money on settlements with major online gambling sites that are (or were) operating within US borders.
This past Friday BetOnSports founder Gary Kaplan presented his case in federal court. During the proceedings he agreed to turn over $43.6 million in settlement monies. This comes soon after PartyGaming agreed to a settlement of $105 million (semi-annual payments, ending Sept 2012).
Two different online gambling portals. Both had Head Offices outside of the US. Both agreeing to pay hefty sums of money to “avoid prosecution” and hopefully avoid going out of business.
I think Larry Belfor said it best:
“With the current system in place, there is no need for the US to rush into legalization and regulation of Internet gambling, they are making plenty of money by busting overseas operations and then having them pay to get out of potential trouble.”