Does anyone know tax laws for sports arbitrage in Canada and the USA?
by Now Arbitrage on Friday, January 22nd, 2010 | 2 Comments
Hey-
I was interested in getting into sports arbitrage, so does anyone know the tax laws for that in Canada and the USA? Is there a limit on how much one can make or be taxed on? Any advice, tips or contacts would be greatly appreciated. Sports betting is totally legal in Canada at least. I just made a bet on hockey last night at the lottery website. thanks so much everyone
Sports betting -online at least- is illegal in the States, but the IRS has a place on your tax return to claim illegally made money, so if you choose to claim it, I guess you could. I think Canada is the same way the UK is and it’s tax free.
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Sports betting -online at least- is illegal in the States, but the IRS has a place on your tax return to claim illegally made money, so if you choose to claim it, I guess you could. I think Canada is the same way the UK is and it’s tax free.
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I use sports arbitrage here in the States, the IRS can eat a dick.
Sports arbitrage is absolutely positively illegal for individuals who reside in the US, and absolutely positively legal for individuals who live in Canada (and the rest of the world.)
I can tell you that if you are a professional gambler in the US, you pay normal taxes (15%-30%) based on your tax bracket, etc. You can also deduct losses against wins, and also travel expense, computer costs, etc. But to be considered a pro most of your annual inome must be derived from gambling.
As a casual gambler in the US you must claim all wins and losses and deduct losses up to the amount you won (so you can’t report a loss at year end, just "0") As a casual gambler you must pay teh highest tax rate for capital gains — 30% and cannot claim expenses.
The best place to be a pro or do arbitrage is England — no taxes on any gaming wins! Might be the same in Canada — just dont know.
As for arbitrage it is absolutely impossile to make a consistent living at it. Too much software out thre now and too many people doing it — they get snapped up immediately, and when they don’t the arbs are usually at sportsbooks you may not have an account at.
Good luck!
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I am a professional gambler.