PartyGaming, 888 to pay US gov't for US profits?

[The Buzz]

Gambling 911 is reporting that PartyGaming and 888.com may be forced to pay up all the profits they made from US-based customers ...

http://www.gambling911.com/Party-Gam...om-081307.html

[Doolally]

Apart from the US pushing these companies around and ruining the ethos of free trade, this really annoys me, "Maybe PartyGaming and 888.com should have just paid taxes like the rest of us who benefit from doing business in the US," said the owner of a US-based website that delivers news related to the online gambling industry.

Oh yeah! Who is this dork!! You think he pays the UK taxes when I buy something from his site. Somehow, I doubt it so why should it work the other way round!

The US Govt. really needs to get a grip!

[pgaming]

This is mere speculation based on two years sniffing. But I have funny feeling 888 was operating within U.S borders within the last two years. Now I could certainly wrong, but this could provide a possible explanation?

I for one would like nothing more for this “buzz” to be true. The “karma” would have made a full circle. Not a big fan 888 but that is beside the point. Personally I hope they get tax to death.

Hoping its true!

greek39/

[The Buzz]

This is an interesting development ... reported by the Interactive Gaming News (subscription needed to read whole story) ...

According to ThisIsMoney.co.uk, the DOJ could try to repossess the profits--$900 million and $120 million, respectively--Party and 888 earned from their U.S. facing businesses.
Sources for both companies, however, told the news source that neither is in a position to surrender that amount of money, which could effectively put them out of business.

Party, 888 Could Face $1.02 Billion Payout to US Justice Department

[big fish]

wow - that would be crazy of those GIANTS went out of business. then the vegas casinos really would be poised to take over... game over!

[villa10]

A little crazy and inconsistent.

Not only offshore online casinos are taking money from americans.
You can add in the list, porn, dating, pharmacy, herbal, info products, travel etc. Why not to tax in the US all these activities?

I can't see future for this issue.

[itay]

I guess we will know for sure...but it is making sense for them business wise... plus it could be that the owners want to go to disneyworld LOL

Itay

[The Buzz]

Been awhile since we've heard anything about this story, but Gambling911 is reporting the Party may be paying the US $20 to settle up on all the revenues it made before pulling out of the US.

Now Buzzy wasn't an economics major, but this figure was arrived at by coming up with a 15% tax rate on what they earned from US customers. So the US could collect $20 million from just ONE Internet gambling company in taxes, but instead the government is willing to pay one tiny Caribbean nation that much each year just to have a law in place that makes it harder for US citizens to move money to Internet casinos and poker rooms, but does nothing to actually stop them from playing? Seems counterintuitive to me ...

http://www.gambling911.com/PartyGaming-010708.html

[thepokerkeep]

These quotes are interesting.....

"There is no reason why a number of these gambling companies ran out of the US," contends Eric M. Bernstein, one of the most successful first amendment attorneys who is currently representing independent trade organization, iMEGA.org in its challenge against the Unlawful Internet Gaming and Enforcement Act."

"Considering how quick both companies were to turn their backs on US citizens, it would shock few people in the online gambling community if either PartyGaming or 888.com or both were to "betray shareholders". If PartyGaming pulls out the check book, 888.com stands a pretty good chance of following based on past trends."

" Both US and foreign companies cut their taxes by profit shifting, but many lawmakers and tax analysts believe the practice is particularly widespread among foreign companies. More than 70 percent of foreign firms paid no tax each year between 1987 and 1991, the IRS reports, compared to about 60 percent of US companies. Clearly, some paid no tax because they did not make a profit, but many lawmakers believe others are illegally shifting profits overseas."

[pgaming]

"betray shareholders"

Just could be they betray webmasters, players, search engines so why not shareholders?

Perhaps a tad nasty but 888 is the most sh** program out there. Time will tell where 888 goes from here.

I went so far as to not link with any webmasters supporting 888. Man I dislike this program.

greek39

[thepokerkeep]

Yes, as much as I detest G911, I think they're the worst gossip rag on the net, they gave us a pretty good insight with this story.
I agree with you Greek, 888 is one of the worst brands out there.

[wallstreeterww]

Why dont they just regulate the online gaming like some countries are starting to do with online casinos.

[funboy]

If Partygaming and 888 do hve to pay back their profits, their may well be a few poor webmasters as part of their profits was given to affiliates, so this could also be requested back from affiliates...

fortunately i was not one of these webmasters