There are very few people that want to lose money, most of us are happiest when we are gaining money.  Similarly most people do not like to pay taxes, but most of us do; however that might be due to the knowledge that if you do not pay taxes you can lose much more than the tax owed to the government.

Online casinos may not be legalized in the United States, but there is a law that gamblers must report 80 percent of earning through gambling.  It is mandatory that players pay tax on this.  Some gamblers may believe that online casinos are excluded from the tax.  How can the government ask for tax on an industry that they do not legally recognize?  This will not be the first or last time that the government does something that does not make sense.

It is very important that gamblers keep very accurate tabs on their winnings.  Most online casinos already do that for you.  It is up to you to make sure you report honestly and pay the government what they are owed. 

An audit can happen to any person at any time.  It is important that no matter what financial activities you are involved in that you are prepared to be audited.  There is an added stigma with online casinos.  Online casinos have been used by several criminal organizations to launder money.  The last thing you want is for a little bit of greed to get you into a lot of legal trouble.