The House Energy and Commerce Subcommittee on Commerce, Manufacturing, and Trade held its second hearing today to discuss internet gambling. The house held its first hearing in late October. Unfortunately for poker players, Rep. Joe Barton’s bill which would give states the right to regulate online poker was not thoroughly discussed today. Instead the hearing focused more on the issue of problem gambling. Dr. Rachel Volberg testified that the internet makes people ten times more likely to become problem gamblers than traditional gambling at a brick and mortar casino. Rep. Frank Wolf from Virginia condemned internet gaming saying that the social costs of gambling outweigh any benefits by a ratio of 3 to 1.
The news for poker players was not all bad at the hearing however. Rep. Barton made sure to point out that his bill is only in regards to regulating poker, which is a game of skill, and in no way is his bill attempting to legalize other casino games, which are games of chance. Rep. Barney Frank argued that it is not the government’s role to regulate whether adults should be able to gamble as a form of entertainment. Frank further worried about the government’s restriction of internet usage.
In the end, it appears that U.S. poker players will continue to have to just sit and wait in limbo as no vote on Barton’s bill was held or scheduled.
WSOP Champion Heinz Pays togel Singapore Taxes on $8M Win
The World Series of Poker (WSOP) Main Event just concluded last week, with Pius Heinz being crowned champion. For his extraordinary play, Heinz pulled in a massive $8.7 million. Hailing from Germany, a popular question has been just how much of these winnings will be taxed? According to Russ Fox of Clayton Financial and Tax, the answer is zero.
Fox’s analysis became popular when CNBC sports analyst Darren Rovell tweeted a link to the story. In his analysis, Fox broke down the tax liabilities of each of the November Nine. Heinz had the best deal of all, reaping the benefits of a U.S.-Germany tax treaty. Under this treaty, gambling income is exempt from all U.S. taxation. That got Heinz clear of the American tax, but what about in his native country? In Germany, gambling is defined as the usage of “after-tax money.” In other words, his gambling income is not taxed at all. Thanks to this law, $8,715,638 will find its way into the winner’s bank account.
In 2008, Main Event champion Peter Eastgate lost 75% of his winnings simply because he is a citizen of Denmark. Eastgate pulled in $9.1 million, but only was rewarded with a little under $3 million.
Out of all of the 2011 nine final table payouts, Fox’s analysis concluded that 18.91% was taxable income. This is a vast improvement over the 43 percent taken out of 2010′s final table. However, in 2010, every player was subject to taxation (unlike Heinz in 2011).