If you have won a US casino jackpot, and have been issued IRS form 1042-S, it means you have paid gambling winnings tax, and have had 30% deducted from your original jackpot. A casino tax rebate is available to many Europeans and Japanese gamblers at the casino. They have to prove their national identity, usually in the form of an eligible foreign passport, and will receive an instant casino tax rebate at the casino.
However, Canadian gamblers are not eligible for an instant casino tax rebate, and will have to apply for one later. It is more complicated, but the Canadian gamblers who do their homework will receive a gambling tax refund as well.The Internal Revenue Service (IRS) tax code allows for the gambling winnings taxes to be offset by gambling losses.
Thus, using the above example of a $1500 US slot machine win and its $450 US gambling winnings taxes; if the gambler had gambling losses of at least $1500 US, he/she would receive a gambling tax refund of $450 US, equal to the entire sum of the initial gambling winnings taxes. If the gambler had smaller gambling losses, he/she would receive a partial gambling tax refund.Obtaining a gambling tax refund isn’t easy. The IRS is infamous for its Byzantine rules, and this is made much worse for non-resident applicants. The IRS has however, licensed Certifying Acceptance Agents to help Canadian gamblers obtain a rebate of gambling tax.
Why do people become addicted to gambling?
Gambling addiction is like any other addiction. As with drug addicts and alcoholics, gambling addicts suffer from a disease – it is incurable and progressive. Yet with treatment and a daily programme of recovery, it can be arrested and maintained.
When a gambling addict engages in gambling and the related behaviours that go with it, they experience an escape from their feelings. Addicts are individuals who very often do not know how to cope with their feelings and emotions. Thus follows behaviour to take them away from the present, leaving their emotional capacity hollow. The disease of addiction can be described as a “hole in the soul” – a spiritual void which gambling addicts attempt to fill with destructive behaviour and short-term highs.
Surprisingly, many gambling addicts describe the pull of gambling addiction as involving losing at gambling more than winning, although winning does provide an incredible high. The loss of money and possessions fills them with a desperate need for hope of gaining control again, leading them to act out compulsively on gambling behaviour over and over again.
What happens when a person is addicted to gambling?
Unable to control their obsessive and compulsive gambling, addicts are taken to a very dark place, which grows increasingly worse over time. Losing families, jobs, houses, cars and all other possessions, but mostly self respect, the gambling addict is left in a place of total unmanageability where their life has suffered complete destruction. Suicide is common amongst gambling addicts as they see no other solution to their habit and loss of livelihood. Even though they want nothing more than to be free of their compulsion to gamble, they cannot stop, they do not know how to stop, and cannot see a life free of gambling.
How does a gambling addict recover?
As with any addiction, for a person who is a gambling addict to begin recovery, they will need to stop their gambling behaviours in order for healing to begin.
In contrast, Internet gambling laws in the U.K. have made the lives of providers and players a bit easier. The passage of the Gambling Act of 2005 has basically legalized and regulated online play in the U.K.With the objectives of keeping gambling from promoting “crime or disorder”.
The U.K. act attempts to keep gambling fair, in addition to protecting younger citizens and others who may be victimized by gambling operation. Unlike the United States, which still clings to the 1961 Wire Wager Act, the U.K. significantly relaxed regulations that are decades old. A gambling commission was established to enforce the code and license operators.
A Whole Other Country
According to Walters and many other observers of the Internet gambling laws scene, the United States Department of Justice continues to view all gambling on the Internet as illegal under the Wire Act. But there are details in the federal law that defy attempts to throw a blanket over all online gambling.
The Wire Wager Act forms the basis for federal action on Internet gambling laws in the United States. The law was meant to complement and support laws in the various states, focusing primarily on “being engaged in the business of betting or wagering” using wire communication to place bets or wagers on sporting events or similar contests. The law also comments on receiving money or credit that results from such a wager. The keys are “business,” “money or credit” and “wire communication facility.”
But as many attorneys and proponents of fair Internet gambling laws emphasize, the federal law does not specifically address other forms of gambling. This has left the law open to interpretation when it comes to online casinos specifically and using the World Wide Web to play online games.
October 13, 2006 is a crucial date in the controversy surrounding the legalization of gambling. For anyone wishing to understand Internet gambling laws, the federal law passed on that day is essential knowledge. President George W. Bush signed the Unlawful Internet Gambling Enforcement Act (UIGEA), which is intended to limit some “financial transactions” used for online gambling.