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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 :

Amaya FY2016 Trading Update - The Montreal-based Amaya online gambling group has issued a trading update covering FY 2016 and improving its forecast revenue and earnings numbers.

Another Mega Fortune Dreams jackpot for Euro 3.5 million - In a statement Friday NetEnt advised that the lucky player is a 62-year-old woman from central Finland who won the seven-figure sum from a Euro 1 stake.

Stanleybet has filed a legal action against the government of Cyprus - Bookmaking firm Stanleybet has filed a legal action against the government of Cyprus, claiming Euro 12.5 million as compensation for what it claims is loss of profits and opportunities, prejudice to image and business reputation and legal costs.

LeoVegas To Sponsor Leicester Tigers - The agreement includes official partner accreditation, media space at Welford Road stadium and matchday tickets and VIP hospitality as well as two pitchside perimeter boards from the 2017/18 season and one for duration of the 2016/17 season.

Optima Information Services iShop - Industry visitors to the recent TVC Bookmakers Trade Fair in Solihull, UK were much taken by Spanish betting technology firm Optima Information Services' iShop product, and the company went on to win the SBC Best Retail Betting Product award with it last month.

Golden Nugget Las Vegas Launches New Betting App - Golden Nugget Las Vegas has unveiled a sports wagering app offering Nevada punters the comfort and convenience of being able to wager from anywhere in the state.

CAGAYAN CHIEF MOVES TO REASSURE LICENSEES - Apparently $4 million is going into improvements of the Authority’s data centre in the Freeport at Cagayan, whilst another $3 million has been earmarked for an upgrade to data infrastructure located outside the Freeport.

New Massachusetts Online Gambling Bill - It seems that every two years (give or take a few months) Massachusetts state Senator Bruce Tarr flights an online gambling legalization bill in the state Senate.

Las Vegas Sands Fined for foreign bribery allegations - #lasvegassands Las Vegas Sands, the land casino company owned by multi-billionaire US mogul Sheldon Adelson, has again had to cough up a stiff penalty for non-compliance with the law.

Libratus AI Program Destroying Human Poker Opponents - #Libratus With 40,340 hands played (about a third of the 120,000 planned) Dong Kim is down $29,506, whilst Jimmy Chou ($113,7728), Daniel McAuley ($141,877) and Jason Les ($186,489) are all carrying losses.

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