On July 5, 2018, the Pennsylvania Horse Racing Commission (PHRC) announced that it would assess a $450 “excise tax” on any person who wins more than $3,000 from gambling on horse races at the state’s four racetracks. This new rule is set to take effect on August 1, 2018.
The PHRC has justified the new excise tax by stating that it is necessary in order to “provide for the care, protection, and welfare of racehorses in Pennsylvania.” In other words, the commission argues that the money raised by the tax will be used to improve conditions for horses involved in racing.
Critics of the tax, however, say that it amounts to nothing more than another revenue-generating measure by the cash-strapped state government. They argue that the PHRC could find other ways to fund horse welfare initiatives without imposing such a heavy burden on gambling winners.
Those who will be most affected by the new tax are horseplayers who make a living from betting on races. For example, if a horseplayer wins $10,000 from gambling in a single day at one of Pennsylvania’s racetracks, they will now have to pay an excise tax of $450. This will severely reduce their profits and could even lead to some players going out of business.
It remains to be seen how many people will actually be affected by the new excise tax. Some horseplayers may choose to avoid betting at Pennsylvania racetracks altogether in order to avoid having to pay the fee. Others may simply choose to bet less money in order to stay under the $3,000 threshold.
In early December, I was visiting my local casino for some evening entertainment. After about 4 hours of playing various games, I had amassed $3000 in winnings! Feeling excited and lucky, I decided to continue gambling.
A little over an hour later, I had lost all of my winnings and more - owing the casino $450. Needless to say, I was disappointed with myself.
Why did I lose so much money after winning earlier? It turns out that I was riding high on the excitement of my earlier winnings and wasn’t paying enough attention to the risks associated with playing higher stakes games. In addition, I wasn’t using any proven gambling strategies to improve my chances of winning.
If you’re ever in a similar situation, here are a few tips to help you stay in control and make gains instead of losses:
Don’t bet more than you can afford to lose: This is probably the most important rule when gambling. Even if you’re on a winning streak, don’t risk betting more than you can afford to lose. This will help avoid nasty surprises down the road.
Use proven strategies: There are many different strategies that can be used when gambling - from basic blackjack strategy to roulette systems. Make sure you know what these strategies are and use them to your advantage!
Stay disciplined: This goes hand in hand with not betting more than you can afford to lose. When you’re in the heat of the moment, it’s easy to forget about your bankroll and start making reckless bets. But if you stick to your original plan, you’ll be more likely to come out ahead in the long run.
Assuming you’re in the United States, gambling winnings are taxable income. If you hit it big at the casino and walk away with $3000, the IRS will expect to see a Form 1040 reporting that income. But what if your gambling winnings are more than your losses?
Say you gamble all year and incur losses of $2000, but then hit it big one weekend and win $4000. You would owe taxes on the $4000 winnings, but you would also get a Form 1099-Misc reporting the $4000 as miscellaneous income. This means that your total taxable income for the year would be $8400, rather than just the $4000 gambling winnings.
But there’s good news too: gambling losses are deductible. So if you have total losses of $6000 for the year, that would reduce your taxable income to $2800. And if you itemize deductions on your tax return, you can claim even more!
The bottom line is that gambling can be a great way to make some extra money, but it’s important to understand how taxes work on those earnings. Make sure to report all of your gambling income and losses on your tax return, and consult a tax professional if you have any questions.
Casinos always offer a range of activities and games that can be enjoyed by anyone who enters their doors. Whether you are looking to play slots, blackjack, roulette, or poker, there is something for everyone inside a casino.
There is also the potential to win big while playing your favorite casino game. Just this week, one lucky gambler walked away from the casino with a $3,000 winner’s purse after only playing for a short time. In true form, the casino welcomed the winner with an extravagant $450 bill.
This gesture is not out of the ordinary for casinos around the world. In fact, many casinos will comp (or give complimentary) rooms and other amenities to high-rollers and big winners. It’s all part of the experience and an effort to keep players coming back for more.
So if you’re feeling lucky and want to try your hand at some casino games, remember that you could walk away a winner – and might even be treated like one too!
I was recently pondering what I would do if I won $3000 gambling. Given that the odds are generally against you when gambling, it’s not a question that comes up often. Nonetheless, after a bit of contemplation, I think I have a plan for how I would spend the money.
First and foremost, paying off any debts or outstanding bills would be my top priority. This means that if I had any credit card debt or loans to pay off, those would be immediately taken care of. After that, I would put some money into savings for a rainy day – you can never be too prepared, especially when it comes to money.
Next on my list would be taking care of some necessary expenses. If I’m honest with myself, my car is in need of some repairs and could use a new set of tires. Additionally, my rent is due in just a few weeks. So, some of the $3000 would go towards fixing up my car and covering my rent payment.
Finally, I would use the remaining amount to have some fun! A little bit of luxury never hurt anyone and this would be the perfect opportunity to treat myself to something nice. Maybe I’d buy a new outfit or book a trip somewhere tropical…the possibilities are endless!
Of course, there’s always the chance that I wouldn’t end up winning $3000 – but that doesn’t mean I can’t dream! In any case, if I ever came into such good fortune, I know how I would want to spend it.