You guys are amazing sometimes. First off Neteller should have no more responsibility for recovering money than your bank when you get screwed. They are merely a money transfering agent, albeit an expensive one.
But lets get more to the other points here. Some people amaze me. You guys ought to work for Ass-croft, he would love you. You all jump to conclusions about the law and ignore the myriad of steps that would prevent any of this gloomy stuff from happening. Where should I begin?
1. Tax courts and tax law are their own world, separate from the normal criminal courts. Tax court judges only hear tax cases and tax prosecutors only handle tax cases. The law clearly states the two are to be kept separate and they have a process that must be undertaken to have the paths cross. Namely the IRS has a legal duty to protect your records and privacy. The only way the DOJ or anyone else can get them is with a subpoena, which requires some reason to suspect a crime has taken place. When you consider that there is NO federal law against the act of betting, this whole idea of getting in trouble because of a tax return gets awfully ridiculous and unlikely...unless you really believe the DOJ just wanders freely through tax records.
2. Ass-croft would probably hate to admit it, but the 5th amendment does stil apply where we all come from. You cannot just admit to a crime on a piece of paper and have that be admissable evidence in a court of law. There has to be clear evidence of a crime and it has to be separate from just saying you gambled in a tax return. Other people's word can get you in trouble, but your own cannot without your open acceptance of it.
3. What exactly are you guys thinking you are writing on this tax form anyways??? You just have to write "gambling winnings". Not "winnings from CRIS sportsbook, San Jose, Costa Rica". There is legal gambling in 48 states. The other two have good airports from which you can fly to a place with gambling. Someone tell me how you think it is possible for an assumption you bet offshore if you just say you had gambling winnings or even listed yourself as a professional. Many poker circuit pros live in states without cardrooms, they just earn a living at tournaments. O'Neill Longson, a great player, has listed as his hometown Salt Lake City the whole time he has been a poker pro. Dewey Tomko has lived in Florida practically all his life, yet still is a big winner at tournaments. That proves anyone in any area can be a pro legitimately.
4. For all the doom and gloomers, remember just how many people have been convicted of offshore betting. ONE. Thats right, ONE. He got caught because he admitted it after being turned in by family. There are thousands who bet offshore in Nevada and we have a specific law against it. Billy Walters is the only person I know of being even charged with this crime, but the charge was dropped. There is a clear precedent, simply put you bet offshore, you pay your taxes, you don't get in trouble. Could something worse happen? Sure, but I think your chances of making millions from betting offshore are better than your chances of getting prosecuted and being forced to pay a fine.
