In my last blog entry I wrote how Brad and I were in Tahoe during the October 1st mass shooting in Las Vegas. Of course we followed the news and were greatly saddened by such a large loss of lives, but didn’t personally know anyone that was connected to this terrible incident. We then found out early that the shooter was a gambler, but as more details came out, we realized that he wasn’t just a casual recreational player but one that had used many of the same techniques that many of us knowledgeable video poker enthusiasts use to reduce casino losses and increase wins.
However, I was stunned when I found out that the shooter had actually ordered my book, Tax Help for Gamblers. This was a connection I never expected.
This publicized fact, plus writings and comments on my public Jean Scott Facebook page, brought reporters calling for several days, wanting any little bit of information I could give them. I had no personal details about the shooter, but I could give them some general material about taxes. There had been some stories – rumors? – that he had reported 5 million dollars in gambling “winnings” on a tax return one year. I explained that this sum was likely the total of his many W-2G jackpots resulting from frequent play at high denominations. This is usually a gross amount, not a net profit amount, and will be offset by a deduction of losses. Actually the tax return might not show if you were a net loser, since you can only deduct your losses up to the amount of your wins.
I also had to explain the details of video poker to some of the reporters, many who are not casino gamblers themselves. There has been a lot of misinformation being put out by uninformed reporters. If you want to find out more details, accurate ones, about the shooter’s gambling life, I suggest you read the blog Anthony Curtis wrote on this website. There is also a very interesting discussion in the “Comments” that follow that blog.
The news people always try to sensationalize the actual facts wherever possible. After all that’s how they make money and we all have to earn a living. Some are AP’s (advantage players) others are NM’s (news makers).
George
If he did play at the stakes that everyone is reporting ($125 a hand, most likely, not $100 a hand as initially reported in the media), then he would have generated a W2-G every time he hit a four of a kind or better–once every hour or so even if he was playing pretty slowly. I would imagine that the presence or absence of those forms over the last few years would pretty much validate or disprove the amount of action he provided the casinos. I don’t know to what extent any of that is public record now, but it might be as civil lawsuits proceed. One thing’s for sure–his obtaining “Tax Help for Gamblers” was a reasonable step, given that the IRS assumes that every single W2-G you generate represents actual winnings until you prove otherwise. He might have been stunned if he lost 500 grand in a year and was then presented with a tax bill for his $2 million in W2-G “winnings.” This and other information seem to validate the premise that he was indeed a rational actor, not just some high roller who went a) broke and b) nuts.
You can only claim your losses against your winnings if you go long form.