Being A Professional Gambler

A professional gambler is an individual who devotes a lot of his time at a gambling den or casinos. Professional gamblers are earning by making the correct bets especially when they are playing at the live casino tables. This profession covers an extensive range of careers. The gambler lifestyle is more to it than what Hollywood depicts. You need a lot of training to get to those fancy tuxedos and flicking chips.

• What Is A Professional Gambler
• Names Of Professional Gamblers
• How To Be A Professional Gambler On The Horse Racing

An expert gambler will never lose his self-control and make bets that he shouldn’t make. Being a good gambler means always using your mind and not your heart in the game. Have fun but keep a strict tab on your activities. Always keep a track of time and of your bankroll. Professional Gambler Status - taxes. Question from a gambler considering 'going professional': If I have substantial winnings I would want to avoid being considered a professional gambler so that I would avoid the 15.3% self employment tax, right?

How to Become a Professional Gambler

A professional gambler occupation must not be taken casually. It will take patience, time, and motivation to develop the skills you require to earn a living with specialized gambling. Many gaming programs are being offered nationally. These gaming programs differ in period, content and price. There’s never a dull moment in the career of a professional gambler. professional gambler jobs are quite lucrative. Those who gamble for a living get to enjoy this very perk.

Professional Gambler Job Description

The major role of gambling is that you have to select if you must play in a casino or you can play online. There are many kinds of gamblers such as a qualified gambler, the personality or antisocial gambler, the casual communal gambler, the thoughtful social gambler, the escape and reprieve gambler, and the obsessive gambler. Your job as a professional gambler relies on what you select to gamble on.

For instance, most of the workday for professional sporting gamblers is spent viewing games and examining stats. On the other hand gambling on horse racing might need inspecting horse racing oppositions, leading into the sport situation and, obviously, coming up with a functioning formulation before putting your bets.

[Also Read: A Guide on How to Become a Professional Poker Player]

Professional Gambler Salary

The term professional gambler is at times used interchangeably for both individuals who earn through part-time as well as full-time income through gambling. A lot of the individuals you talk to will perhaps say gambling as a permanent career is not a realistic goal even though a good number of people have made a profession out of gambling.

The potential incomes as a professional gambler are enormous. The U.S Bureau of Labor Statistics (BLS) has projected the average income for professional gambler jobs is $65,294. However, this primarily depends on how frequently you gamble, how good you are at it and how high are your stakes.

Education and Skills Required

Gamblers must be outgoing and friendly. The capability to do basic math quickly is important. The good hand-eye coordination of the exclusive casino atmosphere is even more significant. Keeping a positive attitude will help you a lot to get achievement in your betting career.

Many gambling dealers have gone to dealer school either offered by the casino itself or from a vocational school. Gaming courses are normal in places where games flourish and naturally they take a minimum of six weeks to complete. Student gambling dealers can learn the procedures and rules of the casino games and local regulations and laws as well.

However, finishing school is just the initial step to functioning as gambling. In addition to practical skills, a professional gambler tax might apply to gains in some nations.

There are numerous courses obtainable in blackjack, roulette and other games in the industry of gambling, and it’s obvious that it is developing to be quite famous within the educational settings. Students who are interested in gambling can even get to learn more about casinos from professional gambling academies.

[Also Read: How to become a Mystery Shopper?]

Professional Gambler Tips

Gambling discipline is exclusive. Which one must you select will completely depend on your personality? Let’s check few of the tips to become a professional gambler

• Try the diverse gambling disciplines to find out which one you have a knack for
• Being a professional gambler is all about current risk administration. It’s about winning and not losing. Be careful, never take the risk on your total money on any bet or trade.
• It might be best to try your luck as a qualified gambler while keeping your daily job.

What Is A Professional Gambler

Conclusion

The spirit of a professional gambler is to always be looking for opportunities. (1) The more experience you have, the better you will be able to choose the best practices and trends. Avoid putting all of your money on one game or team. Learn from the best professionals who are into the gambling industry. Learn how they do it and begin joining in on the action.

Professional gamblers are treated differently from amateur gamblers for tax purposes because a professional gambler is viewed as engaged in the trade or business of gambling. The professional gambler reports gambling winnings and losses for federal purposes on Schedule C, Profit or Loss From Business. To compute his or her business income, the professional gambler may net all wagering activity but cannot report an overall wagering loss. In addition, the taxpayer may deduct 'ordinary and necessary' business expenses (expenses other than wagers) incurred in connection with the business.

Whether a gambler is an amateur or a professional for tax purposes is based on the 'facts and circumstances.' In Groetzinger, 480 U.S. 23 (1987), the Supreme Court established the professional gambler standard: 'If one's gambling activity is pursued full time, in good faith, and with regularity, to the production of income for a livelihood, and is not a mere hobby, it is a trade or business.' The burden is on the gambler to prove this status.

In addition to applying the standard established in Groetzinger, courts sometimes apply the following nonexhaustive nine-factor test in Regs. Sec. 1.183-2(b)(1) used to determine intent to make a profit under the hobby loss rules to decide whether a taxpayer is a professional gambler:

• The manner in which the taxpayer carries on the activity;
• The expertise of the taxpayer or his advisers;
• The time and effort the taxpayer expended in carrying on the activity;
• An expectation that assets used in the activity may appreciate in value;
• The taxpayer's success in carrying on other similar or dissimilar activities;
• The taxpayer's history of income or losses with respect to the activity;
• The amount of occasional profits, if any, that are earned;
• The financial status of the taxpayer; and
• Elements of personal pleasure or recreation.

What if a professional gambler's 'ordinary and necessary' business expenses exceed the net gambling winnings for the year? In Mayo, 136 T.C. 81 (2011), the court held the limitation on deducting gambling losses does not apply to ordinary and necessary business expenses incurred in connection with the trade or business of gambling. Therefore, a professional gambler may report a business loss, which may be applied against other income from the year.

LIMITATIONS ON LOSS DEDUCTIONS

Some states do not permit amateur gamblers to deduct gambling losses as an itemized deduction at all. These states include Connecticut, Illinois, Indiana, Kansas, Massachusetts, Michigan, North Carolina, Ohio, Rhode Island, West Virginia, and Wisconsin. A taxpayer who has $50,000 of gambling winnings and $50,000 of gambling losses in Wisconsin for a tax year, for example, must pay Wisconsin income tax on the $50,000 of gambling winnings despite breaking even from gambling for the year.

Because professional gamblers may deduct gambling losses for state income tax purposes, some state tax agencies aggressively challenge a taxpayer's professional gambler status. A taxpayer whose professional gambler status is disallowed could face a particularly egregious state income tax deficiency if the taxpayer reported on Schedule C the total of Forms W-2G, Certain Gambling Winnings, instead of using the session method under Notice 2015-21. In this situation, the state may be willing to consider adjusting the assessment based on the session method if the taxpayer provides sufficient documentation.

For a detailed discussion of the issues in this area, see 'Tax Clinic: Taxation of Gambling,' by Brad Polizzano, J.D., LL.M., in the October 2016 issue of The Tax Adviser.

—Alistair M. Nevius, editor-in-chief, The Tax Adviser

The Tax Adviser is the AICPA's monthly journal of tax planning, trends, and techniques.

Also in the October issue:

Names Of Professional Gamblers

• An analysis of executive compensation clawbacks.
• An update on recent developments in estate planning.
• A look at revisions to Forms 1042-S and W-8BEN-E.

How To Be A Professional Gambler On The Horse Racing

AICPA members can subscribe to The Tax Adviser for a discounted price of $85 per year. Tax Section members can subscribe for a discounted price of $30 per year.