Question by Alby: Sprotsbook Gambling, Winnings, and the IRS?
Lets assume you earned ,000,000 in winnings by betting on sportsbooks via an online website which everybody knows is offshore (ie: Costa Rica). When you collect your winnings and deposit your ,000,000 back into your US Bank account, I assume its a wise idea to report it on your taxes and pay income tax on that money. But in doing so, does that open you up to any criminal issues involving offshore gambling?
Answer by Ptsie
As long as you claim it and pay taxes the risk of being charged for offshore gambling is almost nil. Even mobsters usually get smashed for tax evasion rather than the illegal activity that got them the money. Further, the laws regarding gambling are so ambiguous that it is a waste of tax payer money to even attempt a prosecution. Just to be safe I would set up an account in the Caymans though 😉
What do you think? Answer below!