With Gambling Winnings About to be Taxed, Will It Be Worth It To Gamble?

Over the past year or two I've taken a beating at times, and I've unfortunately been trying to break even ever since. So this is what I'm thinking right now....

I'm not sure how far the US will go with taxing this. Could they go as far as doing this as a short term capital gain? The average salary in the US I believe is $40,000. At this salary, long term capital gains would be taxed at 25%.

So you bet $100, and you're likely paying the 10% vig, returning about $91. Let's say they really do go with the 25% tax rate, which equals $22.75 (~23) on the $91 in profit.

So if your $100 bet is paying $68, why would you even bet? Or do you think the US will just dip their fingers with a low rate similar to sales tax, then increase it incrementally to pay for all the worlds issues and fuckups (i.e. protecting countries in poverty, assisting countries in natural disasters, the BP oil spill, the Vietnam War).

According to Wiki the estimated short term capital gains tax in 2013 will be 28% for 25% tax bracket.

That is why I never got into stocks and stuff. I hated the idea of the government getting 25% of my profits, on top of income taxes.

That's why I love Amazon.Com. I know you're suppose to report sales and use tax for online purchases, but I LOVE paying that $39.99 and not a penny more.

you are WAYYAYAYAYAYYYYYYYYYYY ahead of yourself  big fella....first you would need industry regulation, which isnt going to happen any time soon....THEN we can start talking about taxes....this is SEVERAL years away

Why seize the domains now if there aren't any short term plans on the horizon? What point does this make? Does it scare away potential customers that will be their taxable clientel short enough?

I'm being serious with these questions. I really don't know what this whole thing is going to prove. Maybe they're gauging how the sites will respond, which is by moving to foreign domains apparently. Then they can figure out how to get the loopholes closed.

That statement made no sense to me.

Bill Frist, the father of the bill to ban online gaming never had a plan of taxation and legalization. He got up in front of a group of Religious conservatives and called online gaming "dangerous". They seized the domains not to legalize it but to eradicate it. 

Of course these religious nuts fear online gaming.  They fear people's gambling stipends will cut into their Sunday church basket offerings.

Ive seen these crooks first hand.  Religious "leaders" rake in money hand over fist.

This is what I don’t get about everyone being so excited about the possibility of legalized online gambling. With your loses being juiced and your winnings being taxed people are going to have to hit in the high 50’s or better to turn a decent profit.   

Sure it would make some things easier, but for some of us the difference between having our winnings taxed and not having them taxed is thousands of dollars a season.

Local

If gambling winnings get taxed, it mostly depends on why you play in the first place. If you’re doing it just to make money, the extra tax hit might make it feel less worth it. But if you treat it as entertainment and keep it within your limits, the tax just becomes part of the overall cost.