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  1. #1
    czarina is offline New Member
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    Question US Citizen Gambling Portal Webmasters' Use of US Banks & Payment of Income Taxes Due

    Regarding this subject, with the US Law (UGEA) regarding the prohibition of US Banks to process any online gambling withdrawals or deposits, how are the productive gambling portal webmasters from the US getting around this? I do not see a way around it frankly, unless it is kept hush-hush, which is more than likely the constant case here. Whether you receive checks or get your affiliate earnings through an ewallet, the money still goes through a US Bank. US Banks have the law (rules) written into their documentation when any US checking or savings accounts are opened. They expressly prohibit the use of these types of accounts either for personal gambling use or as a profit off same, i.e., gambling affiliate income. It is pretty obvious that this topic is NEVER brought up anywhere in these types of communities. I know for a fact of one big portal run by a US citizen who quit using paypal to pay her contest winners and now pays by check. Knowing this is wrong, and continuuing to do it anyway, is really like playing russian roulette. Also, putting a "legal disclaimer" up is all well and good, but tons of US players still play. And, the matter of depositing the affiliate payments still exists. US Income Tax is also due on any income earned. I'm sure this one is another big hush-hush area. Curious to see if there are any responses to this. Would love to hear feedback on this topic.

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  3. #2
    czarina is offline New Member
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    Exclamation US Legal Disclaimers Apply to US Citizen Gambling Portal Webmasters, Not Just Players

    Something to think about: The same rules apply to US Citizens who run Gambling Portal Websites, as well as US players, under US Law. In other words, the "Legal Disclaimers" also apply to US Citizens who are earning income based on commissions off losing players, and also not reporting it to the US Government as Earned Income. This is illegal any way you look at it. Using Paypal, etc., to pay off gambling contest winners with your personal name is also big trouble. I would seriously think twice before committing these types of crimes.

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    Thank You for the comments. I would also like to know more about "the law" regarding usa webmasters.

    Obviously its a gray area and I always recommend to file any income received. I do

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    czarina, are you also a US based webmaster?

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  7. #5
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    Quote Originally Posted by czarina View Post
    Regarding this subject, with the US Law (UGEA) regarding the prohibition of US Banks to process any online gambling withdrawals or deposits, how are the productive gambling portal webmasters from the US getting around this? I do not see a way around it frankly, unless it is kept hush-hush, which is more than likely the constant case here.
    Well that's simple. And I'm surprised that you cannot see it. It's not hush-hush.

    Internet Affiliates don't gamble - they provide web based advertising services and are paid for their services accordingly. There is no "gambling" - they don't throw dice, turn cards or bet on a roulette wheel - they get paid for marketting services.

    Advertising and marketing is the second oldest profession ... and it probably started almost immediately after the "oldest profession" needed a way to sell their services ... ahem ...


    Turn it into a couple of real world examples that might make it easier to see similarities with every day examples ...

    It's illegal to speed in a car, but it's not illegal for :
    - sales people to sell a car that can speed 2-3x the limit
    - mechanics to work on a car that can speed
    - petrol attendants to fuel a car that can speed
    - or advertisers to tell you tyhat the top speed is 200mph

    Or it's illegal to drink under the ages of 18/20/21 depending on where you live, but it's still not illegal to :
    - produce alcohol for sale (as long as you have a license)
    - sell the alcohol to correctly aged recipients
    - advertise the alcohols taste, content and seductive imagery.

    Note I did not use the most obvious example of guns - which is a huge industry i the US.

    Quote Originally Posted by czarina View Post
    And, the matter of depositing the affiliate payments still exists. US Income Tax is also due on any income earned. I'm sure this one is another big hush-hush area.
    OF course income tax is due on earned profits - and any serious affiliate has formed a company and declares all taxable income on the due date. To do anything else would be stupid.

    Again - why would it be hush-hush in your eyes?
    It isn't hush-hush at all, and there are many discussions on affiliate forums about tax treatments and appropriate deductions.

    --------------------------------

    Czarina - I'm not quite sure where you are coming from and what your background is - but you appear to have a very incorrect and skewed impression of what is is that internet marketing professionals actually do and how they operate..
    Last edited by TheGooner; 14 January 2010 at 6:09 pm.

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    Casino City is a US based corporation and we derive significant income from online gaming advertising revenue. We declare our income and pay our taxes.

    And our bank understands exactly what we do. At one time there was a question about whether we were actually engaged in running online gaming sites in the US, and we had to document we were not doing that.

    Even the U.S. department of justice is well aware we advertise online gaming, and it was published nationally in business week magazine. You can see an article about it here: http://www.businessweek.com/magazine...0102_mz063.htm.

    Michael
    GPWA Executive Director, Casino City CEO, Friend to the Village Idiot

    Resources for Affiliates: iGamingDirectory.com, iGamingAffiliatePrograms.com, GamingMeets.com

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    TheGooner as usual is correct in his analysis and interpretation.

    When a US iconic newspaper website like US Today publishes live odds on its website you can be 100% that they are doing so within the law, they simply would not do so if it was illegal.

    If they did then they would be very dumb and someone in their legal department would without doubt lose their jobs, especially in light of the fact that some in the gambling inudstry have been jailed in the US.
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  12. #8
    czarina is offline New Member
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    Default US Financial Institution & Credit Card Agreements & Disclosures, Form 1099s

    US Financial Institutions - Deposit Account Agreement & Disclosure:

    UNLAWFUL INTERNET GAMBLING TRANSACTIONS PROHIBITED. You certify
    that you are not now engaged in, and during the life of this Agreement
    will not engage in, any activity or business that is unlawful under the
    Unlawful Internet Gambling Enforcement Act of 2006, 31 USC 5361, et seq.,
    (the "UIGEA"). You may not use your Account or any other service we offer
    to receive any funds, transfer, credit, instrument or proceeds that arise out
    of a business that is unlawful under the UIGEA. You agree that if anyone
    asks us to process a transaction that we believe is restricted under the
    UIGEA, we may block the transaction and take any other action; including,
    but not limited to, legal action, we deem to be reasonable under the UIGEA
    and this Agreement.

    US Credit Cards - Credit Card Contract & Disclosure Statement:

    PROHIBITION ON GAMBLING & ILLEGAL TRANSACTIONS: Your Card and Credit
    Account may not be used in connection with any gambling transaction (whether
    legal or illegal). Also, your Card and Credit Account may be used only for valid
    and lawful purposes. If you use, or allow someone else to use your Card or
    Credit Account for any unlawful purpose or for any gambling transaction, you
    will be responsible for such use and may be required to reimburse us for all
    amounts or expenses, including legal, we pay as a result of such use.

    Corfman, you're in Massachusetts, how many Form 1099s - Statements of
    Earned Income - have you ever received for your affiliate commissions,
    besides zero?

  13. #9
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    So you've posted a set of bank terms that explain that banks, under UIGEA aren't allow to process transactions from a business considered illegal under UIGEA. Last i checked affiliate marketers don't run banks.

    Clearly, US banks aren't allowed to process transactions restricted under UIGEA, yet plenty of affiliates do banking in the US. as Gooner pointed out, selling advertising isn't addressed by UIGEA, so it's not a huge surprise that some affiliates operate and bank in the US

    oh and by the way I'm sure michael can speak for himself, but how is it any your business where he receives revenues from and what forms are filed regarding them? WTF's up with that?

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  15. #10
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    Quote Originally Posted by czarina View Post
    Corfman, you're in Massachusetts, how many Form 1099s - Statements of
    Earned Income - have you ever received for your affiliate commissions,
    besides zero?
    I'm not aware of our corporation receiving any 1099's regarding advertising income. However, in accordance with IRS regulations, we report the income that we receive, whether or not that income is separately reported to the IRS by the payee. In fact, as a corporation, there is no requirement that 1099 forms be filed reporting advertising payments to us even from US based payers.

    Michael
    GPWA Executive Director, Casino City CEO, Friend to the Village Idiot

    Resources for Affiliates: iGamingDirectory.com, iGamingAffiliatePrograms.com, GamingMeets.com

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