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Interesting Poker Income Tax Case in USA

INTERESTING ONLINE POKER TAX RULING IN THE UNITED STATES
 
Online players are not required to report their accounts to FinCEN as foreign bank accounts...but they must do so in respect of e-processor accounts.
 
The legal publication JDSupra.com reported Friday on an interesting July 21 ruling by the Ninth Circuit Court in the United States, which determined that a taxpayer who held online poker accounts with PokerStars and PartyPoker is not required to report those accounts as "foreign bank and financial accounts" to FinCEN, although he or she must report an account with online e-processors such as FirePay.
 
The case was United States v. Hom, No. 14-16214 D.C. No. 3:13-cv-03721-WHA (9th Cir. 2016), and it overturned a decision of the United States District Court for the Northern District of California, in part, which had held that all such accounts were reportable.
 
The key issue was whether either PokerStars, PartyPoker or FirePay was a financial institution, JDSupra reports, with the court concluding that whilst Pokerstars and PartyPoker did not fall within such a definition, FirePay did.
 
The processor had acted as an intermediary between Hom’s Wells Fargo account and the online poker sites. Hom could carry a balance in his FirePay account, and he could transfer his FirePay funds to either his Wells Fargo account or his online poker accounts, the publication reports.
 
"It also appears that FirePay charged fees to transfer funds. As such, FirePay acted as “a licensed sender of money or any other person who engages as a business in the transmission of funds” under 31 U.S.C. § 5312(a)(2)(R) and therefore qualifies as a “financial institution,” the report notes.
 
Hom’s FirePay account is also “in a foreign country” because FirePay is located in and regulated by the United Kingdom.
 
The court found that by contrast Hom’s PokerStars and PartyPoker accounts do not fall within the definition of a “bank, securities, or other financial account.”
 
The online poker providers primarily facilitate online gambling, and Hom could carry a balance on his PokerStars account, and indeed he needed a certain balance in order to participate in a poker game.
 
But the funds were used to play poker and there is no evidence that PokerStars or Party Poker served any other financial purpose for Hom.
 
http://www.jdsupra.com/legalnews/9th-circuit-online-poker-accounts-not-28472/

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Gambling News :

Oryx in deal with Extreme Live Gaming - #oryx Turnkey provider ORYX has selected Extreme Live Gaming for the integration of a number of Live Casino titles to its games platform.

GAN Partners with Station Casinos - B2B online gaming company GAN (formerly Game Account Network) has revealed Station Casinos as its previously unidentified partner in an announcement made August 2016

Tipbet Sponsor of easy Credit Basketball Bundesliga for season 2016/2017 - #tipbet The agreement comes with good timing; the BBL basketball 2016/17 season started last Friday, ensuring that Tipbet benefits from high visibility for its brand presence at the games.

Oceanís Call Slot Launches - Online gambling games developer Habanero has embarked on a journey across the high seas to bring players its latest HTML5 high resolution slot title, Oceanís Call.

Big Names Playing WCOOP - The big names came out to play in the closing stages of the World Championship of Online Poker this week as major prizes were handed out in a number of exciting and entertaining competitions.

Should Gibraltar and Britain be regarded as a single state under EU gambling laws? - The issue has been referred to the ECJ by the High Court with the question "should the UK and Gibraltar be treated as a single member state when it comes to EU law on remote gambling?"

Sirplay to Open Argentina Branch - #SirPlay expects the new office to be fully operational by early next year, extending its service to Grupo Slots, which holds a license to operate the provincial San Luis Lottery, and other potential LatAm clients.

DFS Changes for Ohio - #dfs Coley says that at present DFS is an example of the "pools for profit" concept, the rules for which the state Attorney General has opined are unclear in relation to DFS.

New Jersey Teams Up With Kahnawake Gaming Commission - The New Jersey Division of Gaming Enforcement and the Kahnawake Gaming Commission have agreed to collaborate in preventing unlicensed online operators from accepting bets from New Jersey and other U.S. states through the Continent 8 data centre situated on tribal land, according to reports Tuesday from the Associated Press news agency.

Petition to Ban Online Gaming in Singapore - Singapore Pools and Singapore Turf Clubís application to operate online betting has triggered the origination of a petition that calls on the Government to deny authorization and stop legalization of online gambling.

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