Online Gambling is any kind of gambling that takes place over the Internet. This includes virtual poker, casinos and sports betting. The first online gambling venue opened to the general public was ticketing for the Liechtenstein International Lottery in October 1994.
Legalities of Online Gambling
Some countries prohibit or restrict online gambling; others allow it, but regulate it carefully to protect citizens and their money. The United States is one of those countries. In 2006, it passed the Unlawful Internet Gambling Enforcement Act (UIGEA) to prevent credit cards from being used by online gambling companies.
The UIGEA imposes fines and other penalties on those who provide illegal Internet gambling services. In addition, it prevents financial institutions from processing transactions for these companies.
Taxes from Online Gambling:
Many people are surprised to learn that, although the government collects income taxes from winners of lottery games and traditional casino games, it does not collect taxes from online gambling. This is because the profits that online gambling sites generate are deposited in offshore bank accounts, and the federal government does not collect taxes on them.
Moreover, the money that is lost by players in online gambling is not taxable. This means that if an off-shore casino cheats a player out of his winnings, the winner can sue to get them back.
Online gambling is becoming increasingly popular, and it is a lucrative business. In the United States, there are more than 2,800 casinos that offer online gambling. The industry moves billions of dollars each year, and it can be a profitable venture for entrepreneurs.