Steve and Matt Bourie, author and editor of the American Casino Guide book, interviews Russell Fox, one of the US’s leading experts on gambling and taxes about what the landscape looks like in 2021.
What is it?
The session looks at how gambling winnings are treated for tax purposes, how table games players are treated differently than machine players and how winnings are reported and can you deduct your losses.
Other subjects include if a foreign citizen has to pay taxes if they win a taxable jackpot playing at a US casino, how gamblers are treated by the US tax system and do you think anything could be done to make it a better system.
Within the interview they delve into how all US gamblers, including lottery winners, casino players and sports bettors, to name but a few, could be responsible for paying three different types of taxes on their gambling wins. Additionally, they looked into how players could be taxed on money they didn’t win.
Who is it?
Steve Bourie, Author, American Casino Guide book
Matt Bourie, Editor, American Casino Guide book
Russell Fox, Principal, Clayton Financial and Tax
What is being said?
When asked overall on his thoughts of how gamblers and the way they are treated by the US tax system, Fox responded: “Well they are miserably treated both professional and amateurs are miserably treated.
“One thing that would help immensely is what New Jersey and Pennsylvania do for their state income tax. They are the only two states that allow gamblers to net their wins and losses if they are an amatur. That is extremely pro-gambler friendly.
“It also is logical, it makes sense. It’s not treating gambling as a sin but as a fun activity.”
Matt: “Yeah I believe the reason it started with all these states is they were considering it a sin tax.”
Fox: “That’s correct and that’s unfortunately how congress treats it. It would be wonderful if we went to that system. Therefore I figure there is no chance of it.
“Professional gamblers are in almost as bad a boat. Up through 2017 they could take a loss based on their business expenses. However congress changed the law at the end of 2017 and now professional gamblers are one of only a couple of professions where you cannot report a loss.
“Even if you justifiably have business expenses in one year.”
Matt: “Was that done at the same time as all the other tax changes when they doubled the standard reduction as well or no?”
Fox: “Yes that was a part of the same legislation.”
Matt: “That also made it very difficult because they doubled the standard deductions and now even less people are going to itemise.”
Why should I watch it?
To learn more about gambling and taxes in the US states in 2021.
Where can I see more?
Source: americancasinoguide YouTube Channel