Wednesday February 13,2013 : TAX ON INTERNET POKER TOURNAMENTS
Nevada Gaming Control Board pushing for tax on net profits
The Nevada Gaming Control Board is pushing for a tax on net profits earned from online poker tournaments, apparently differentiating these events from similar live tournament projects in land casinos, which are untaxed.
NGCB chairman A.G. Burnett says that bill SB9, now with the state Senate Committee on the Judiciary, will change the status quo by the time the first licensed Nevada online poker operators are operational.
Burnett says that on-site tournaments are not taxed because they are promotional events for gambling institutions that require significant investment by the host.
Because interactive tournaments do not have the same expenses, such as utilities, floor space rental fees, food and beverages, they should not be exempt from tax and all costs, the chairman opined.
The proposed tax mooted in SB9 will not extend to prizes won by players gambling online.