Six Tips on Gambling Income and Losses

Six Tips on Gambling Income and Losses

IRS Summertime Tax Tip

Whether you roll the dice, play cards or bet on the ponies, all your winnings are taxable. The IRS offers these six tax tips for the casual gambler. Gambling income includes winnings from lotteries, raffles, horse races and casinos. It also includes cash and the fair market value of prizes you receive, such as cars and trips.

If you win, you may receive a Form W-2G, Certain Gambling Winnings, from the payer. The form reports the amount of your winnings to you and the IRS. The payer issues the form depending on the type of gambling, the amount of winnings, and other factors. You’ll also receive a Form W-2G if the payer withholds federal income tax from your winnings.

You must report all your gambling winnings as income on your federal income tax return. This is true even if you do not receive a Form W-2G.

If you’re a casual gambler, report your winnings on the “Other Income” line of your Form 1040, U. S. Individual Income Tax Return.

You may deduct your gambling losses on Schedule A, Itemized Deductions. The deduction is limited to the amount of your winnings. You must report your winnings as income and claim your allowable losses separately. You cannot reduce your winnings by your losses and report the difference.

You must keep accurate records of your gambling activity. This includes items such as receipts, tickets or other documentation. You should also keep a diary or similar record of your activity. Your records should show your winnings separately from your losses. To learn more about this topic, see Publication 525, Taxable and Nontaxable Income. Also, see Publication 529, Miscellaneous Deductions. Both are available at IRS.gov or by calling 800-TAX-FORM (800-829-3676).

Additional IRS Resources: Publication 525, Taxable and Nontaxable Income Publication 529, Miscellaneous Deductions Tax Topic 419, Gambling Income and Expenses Form W-2G, Certain Gambling Winnings

This is a reprint from irs.gov. to view the original, click here.

Online sportsbook 5Dimes caught up in Costa Rica money laundering probe

Online sportsbook 5Dimes caught up in Costa Rica money laundering probe

Costa Rica-based online sportsbook 5Dimes has been caught up in a money laundering probe that also involves a director of the country’s national bank.

This week, Costa Rican media outlet Nacion.com reported that Marisol Carvajal Cordero, a 35-year-old local listed as the manager of 5Dimes, had been connected to companies whose Banco de Costa Rica (BCR) accounts were abruptly closed in November after the bank was unable to verify the source of the funds in the accounts.

The report claims Carvajal -controlled companies based in Malta and Dubai transferred a total of $1.53b in 2014 to BCR accounts. Some of this $1.53b was transferred to 5Dmes’s parent company, Red Planet SA, which Carvajal also heads up. The BCR claimed it was unable to resolve the volume of the transferred funds with Carvajal’s managerial status.

Around $67m was transferred from Caravajal’s accounts to Latinamerica Trust & Escrow Company SA (Latco), a company ostensibly set up to handle real estate administration in Costa Rica. The $67m was moved in 25 transfers from the Malta and Dubai companies via banks in Germany, Spain the UK and the United States.

Around 30% of the funds deposited with Latco were forwarded to accounts in Panama and Peru, while 67% were transferred to Latco accounts at other CR banks and the remaining 3% was distributed via cashier checks.

Lawyer Manfred Pino reportedly holds the vast majority (87%) of Latco’s shares, while his wife controls the rest. Jennifer Morsink, a BCR director, is listed as Latco’s treasurer.

In a followup report, Pino told Nacion.com that the probe was the result of a personal feud between Morsink and BCR president Paola Mora Tumminelli. Pino claimed Mora suspected Morsink of being the author of an anonymous conflict of interest complaint filed against Mora last September, two months before the accounts were closed.

Pino claims Mora personally warned him that the bank would launch the probe unless Morsink fessed up to being the author of the complaint. Pino also claimed that the bank’s claim of inadequate documentation involving the Malta and Dubai companies was due to Pino only having been given 72 hours to produce the necessary documents.

It’s important to note that Costa Rican officials have yet to file charges against anyone connected with this probe. But 5Dimes’ plight reflects the increasingly ridiculous hurdles that American sports bettors must negotiate in order to fund their entertainment choices, all because US authorities can’t seem to disabuse themselves of outdated notions of the morality of sports betting.

This is the second time Costa Rica’s online gambling industry has been connected with a money laundering probe in as many weeks. Late last month, Western Union revealed that US federal authorities were probing the company’s transactions with online gambling firms, including at dozens of WU agent locations in Costa Rica.

This is a reprint from calvinayre.com. to view the original, click here.

DraftKings and eSports Teams End Sponsorship Deals

DraftKings and eSports Teams End Sponsorship Deals

Daily Fantasy Sports kingpin DraftKings has ended their affiliation with six major eSports organisations according to a report published by the Daily Dot.

As I watched Match of the Day last night, I couldn’t help but notice that DraftKings had arrived in the UK with aplomb, as the flashing billboards at the Emirates and Anfield sent the name of the Daily Fantasy Sports (DFS) kingpin into the minds of the masses.

Unfortunately, things aren’t going as tickety-boo in the eSports industry. According to the Daily Dot, DraftKings appears to have severed ties with the six major eSports outfits it inked deals with last September. Sports management agency WME|IMG help broker a multi-million dollar contract between DraftKings and Cloud9, Team SoloMid, Counter Logic Gaming, compLexity Gaming, mouseports and SK Gaming. All existence of DraftKings has been wiped from those particular slates.

DraftKings and eSports Teams End Sponsorship DealsThe Daily Dot could not obtain an official response from DraftKings before the publication of their piece. However, Legal Sports Report did:

“Our partnerships in the growing eSports field have been rewarding, and we value our continued relationships with these businesses. We remain committed to offering exciting eSports DFS contests through the DraftKings platform and will continue to explore opportunities accordingly.”

So that tells us nothing then.

You could argue that DraftKings had only dipped a big toe in the eSports water after their interest only went as far as League of Legends. I see this as a minor blip. As eSports grows so will the opportunity for DFS.

The Daily Dot report suggests money is the core of the issue. DraftKings have been embroiled in some much publicised legal spats in Arizona, Illinois, Iowa, Louisiana, Montana, Nevada, New York and Texas. All those states believe DFS is illegal, and it’s costing a pretty penny trying to prove otherwise. That same report suggests DraftKings has also cut down on its expenditure in the NFL and NBA.

The same is not true in the UK as DraftKings begin their invasion. They have launched a website dedicated to the greatest sport in the world called DraftKingsFC.com and are running a series of ads with former Wigan star Jimmy Bullard featuring in their #BeatTheBulldog feature, where Bullard is taught how to play DFS by an actor called Jamie.

This is a reprint from calvinayre.com. to view the original, click here.