I have traveled some in my day, but I still love New Jersey. In what other state do people slap bumper stickers
on their cars referring to the exit where they may either live or play on the Garden State Parkway? And is it any accident that Tony Soprano made his home
in New Jersey? So my chest understandably swells with pride as New Jersey began allowing Internet gambling just a few weeks
ago. Now insomniacs can waste away every paycheck with but a few clicks. People
who once stood idle in supermarket checkout lines can now try their hand at a
bit of blackjack or roulette. Even you, poor reader, may choose to read a few
words of this meager blog while at the same time rolling virtual
dice at your favorite casino. The New York Times reported that gambling analysts
say that turning to the Internet was the most significant development since
casinos opened in Atlantic City and that New Jersey's action has set off a
furious competition for a share of the take. The “Take”? This certainly sounds
like a script Al Capone would have published from Chicago. Let's make no
mistake about this either we are not just talking about “harmless” poker. Oh
No. New Jersey now offers a full range of casino games. Gov.
Christie said that he hoped that $1 billion would be generated for the state's
casinos this year and the state’s "take"would amount to $150 million in tax revenue.
Naturally, the naysayers believe that Christie's comment was a sucker's bet and
that in reality the state will be lucky if $300 million and revenue of perhaps
$45 million appear annually. Gamblers do not seem to see the money that they
are throwing away as a tax. Those who gamble frequently are always losers. The
gaming industry has made sure that the suckers out number the winners by a
drastic proportion. It remains to be seen whether New Jersey's laws restricting gambling to people over 21 can be
enforced and whether casual gambling by young people will become as prevalent
as sending text messages while driving. But there is a winner, a sure winner, in
all of this and it is not New Jersey's
educational institutions. It is of course, the Internal Revenue Service. Federal
tax law taxes income from whatever source derived. By the way, that means legal
or illegal. So should there be any winners among the state’s “Click and Play”
citizens, they will be taxed on the income generated from their activity. They
will be able to deduct their gambling losses only to the amount of their gain.
Put another way, the real suckers will be left out in the cold by the tax code
but IRS will be standing there collecting its" take" on any winnings. I would
write more about this subject, and how gambling is a ruinous activity but I
would bet 6 to 5 that you get the point.
