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For instance, New York taxes lottery winnings at 13%, and New Jersey levies a three% tax on all gambling revenue. States without income tax, akin to Nevada and Florida, don’t charge additional taxes on playing winnings, however they will nonetheless concern a W2-G in your federal taxes. Federal Gambling Legal guidelines: What's the UIGEA? The Unlawful Internet Gambling Enforcement Act (UIGEA) is the only federal regulation that relates to online gambling. The UIGEA prohibits web gambling operators from accepting money from gamers in the United States(6). This regulation doesn't prohibit particular person players from collaborating in online gambling. As a substitute, it focuses on the US firms that operate casinos, and prohibits them from accepting deposits. While the UIGEA is focused specifically on internet gambling operators, the bill additionally contains some language about designated payment techniques and monetary transaction providers.

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