Is gambling online illegal as an Ohio resident?

Question

For example: Betting on NFL football. If someone were to make $10,000 over a course of an NFL season should that income be listed as taxable? Even though gambling is illegal in Ohio?

Answer 1

It's not illegal to bet online with an online gaming site! There is NO federal law that makes the act of wagering online illegal. The only federal law that addresses gambling is the wire act from the 1960's which makes it illegal to place wagers via the telephone. The US government passed a port security law and tacked on provisions (UIGEA) that make it illegal for BANKS, not players, to fund or accept payment from gaming sources. The only problem (for the govt) is that there are dozens of third party methods available for funding and no way to trace ACH credits. In other words, the new provisions are only for show and the end result is a waste of ink. I still use my VISA check card and e-check on my favorite sites. Online gaming will be impossible to completely eliminate from the US. The best they can do is make it inconvenient. Eventually I see the industry being regulated and taxed...heavily!

The only states with laws directed towards online wagering are Michigan, Illinois, Louisiana, Oregon, Wisconsin, Washington, Indiana, Nevada, New York, New Jersey and South Dakota. Although these states do have specific laws pertaining to online gaming, there has not been any charges laid.

Some sites have decided, on their own, to no longer accept American players. These are the publicly traded companies and most have returned to private ownership. There are still many highly reputable sites that welcome and cater to American clients.

I have wagered online for years and make good money betting on sports and playing poker. You can get free poker tips from the pros, articles, free daily sports picks, betting tips, sports betting stats and reviews of only highly reputable gaming sites at http://GamblingReviewsSite.com

The recommended sites all offer top customer service, security, and fast/free payouts. They also cater to American clients with great bonuses, e-check deposits, and other promotions.

As far as tax implications go, that's a separate topic altogether.  You are required to report all of your worldwide income, regardless of it's source.  That being said, you can also claim your losses against your profits.  Also note that if you use a reputable gaming site there will be no reporting of income to ANY source.  You should make withdrawals in increments of less than $5K to avoid your financial institution from reporting your banking activities to the IRS.  Take care.