http://www.impactlab.com/modules.php?name=News&file=article&sid=13497
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Casinos and other sponsors of poker tournaments will be required to report winnings of more than $5,000 to the Internal Revenue Service beginning March 4, 2008, the tax agency said Friday.
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Sigh!
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Reinke Faces Life 
>You hang out in casinos, and buy chips from big winners.
Hi Rich,
You’re right that could work. There was something like that in the Eighties going on at the Race Track in NYC. Lowlifes would hang around at the Race Tracks trying to identify the big SuperFecta winners of more than $1200. That was the tax reporting threshold. They’d offer 90% cash on the spot for the winning ticket. According to what I read in the newspaper, they did it to launder drug money. That activity ended when the “authorities” began to watch the video tape of the winner buying the ticket. You’ll see that most of the tickets say non-transferable on them.
Sigh. Good idea though. I’m sure the gooferment will make it impossible to avoid theft of their “share” of your winnings.
Thank you for your comment,
fjohn
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This law can actually help people! The government really can create jobs!
Here’s how it works:
You hang out in casinos, and buy chips from big winners. These may well be people in relatively high tax brackets. You pay something slightly less than the face value of the chips, but he never generates a taxable event.
Once you have the chips, you can either arbitrage them to other gamblers, or you sell them back to the house, using welfare queens as straw men, so they never get into a taxable range of income. Or, if there are no ID requirements, you just cash in the chips using fake names.
The government cannot create efficient jobs, but it sure can create opportunities to make money driving drugs and cigarettes around the country, and now arbitrage of chips.
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Well, in Kansas City, (where they had a rule that you could only buy in $200 per day), they gave you a receipt each time you cashed out. Seems like they could do something like that. In Hilary’s Amerika, you could have to report to the cage, identify yourself, and “buy” your chips. Then, when you cash out, they can give you your 1099G all filled out for the net. :-)
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How are the casinos going to monitor this? i.e., pull you over when you win a big pot and give you the IRS form to complete? Or maybe when you leave the table, you have to report how much you won? This is crazy. Well you can bet the players will come up with some ‘technique’ to bypass it, any ideas?
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