Jeffrey Trauman, the only person in US history to be charged with internet gambling..

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This is a good article about the legality of online betting. It seems that at the Federal level there is no question that it is currently LEGAL to bet offshore.

The questionable part - which is news to me - is that at the state level there are old outdated laws that they can try to apply. Apparantly, North Dakota is the first and only to do so. In most states - if convicted (which is a long long long shot) - it is a second degree misdameanor which is punishable by $500 fine and up to 60 days in the clink.

Read the article about the only man ever charged in the history of the USA. Note that he plead guilty and didnt fight it - I have read many opinions that state if he fought it that he would have won - but he didnt care and just didnt want the aggravation.

http://www.basisonline.org/backissues/2006/vol11pdf/editorial0118_06.pdf

http://www.gamblingandthelaw.com/columns/161_Busted_Online_Bet.htm
 

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Maybe---Just Maybe--he is one of the very rare people that claimed their winnings. This is hard to figure out.
How many here claim winnings for taxes? Don't everybody speak at once now.
 

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Whoson - he did claim this and he claimed professional gambler status which is protected under the IRS tax code.

Furthermore, the IRS is not "allowed" by the "silver platter law" to turn over illegal activity from honest taxpayers to a department of the govt in charge with law enforcement. So in theory, if you claim on your 1040 that you are a drug dealer and pay taxes on it - the IRS is bound by the law to keep that quiet.

Does that happen in the real world? Who knows. In this case he thinks it was either his bank or his own family (for religious beleifs) who tipped off the feds. But the feds thought he was a bookie at first and then realized they had to charge him with something so they found this statute.

Notice he plead guilty without fighting it - most think he would have won if he fought.

PS - I claim my gambling on my taxes.

GL
 

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