Kansas Gambling Losses
Kansas is home to three land-based casinos as well as five Indian-owned casinos. Hosting eight profitable casinos in a state of less than 2.9 million people, the State should not want to discourage its residents from participating in the entertainment.
At least that’s what common sense tells me.
Before COVID-19 cut last season short, Kansas was the clear-cut favorite to cut down the nets. It will also be one of the biggest what-ifs for Bill Self and the Jayhawk faithful. Kansas started out this season with a blowout loss to Gonzaga and a close win over Kentucky in Champions Classic. KANSAS CITY, Mo. (CNN) — Court documents released Friday (June 1) in a case involving a Johnson County pastor charged with stealing money from a Catholic. Recover: Indicates if a gambling loss is recoverable. If the table has blank rows after the name of a state, then I have not been able to find a specific gambling loss recovery loss statute. By 3d Party: Indicates whether a third party may seek to recover a gambling loss if the actual loser does not do so. In some cases only the state’s law.
Well, the 2013 legislative session in Kansas appeared to lack some common sense when deciding to remove the gambling loss deduction from the state’s personal income tax beginning in 2014, as reported by the Topeka Capital-Journal.
Earlier this year, it seemed like Kansas was sure to legalize sports betting but, to date, none of the attempts have succeeded. Kansas is basically out of time to legalize sports gambling during this legislative session. This is the last week for the session and that means, if they don’t get a bill advanced, it will have to wait until 2020.
We know the reason for the change. States are hungry for revenue. Removing a so-called “subsidy” for an entertainment activity is an easy political sell.
Regular readers of this blog know the implications. A taxpayer with gambling winnings in Kansas will have to pay the State personal income tax on gross winnings, and cannot even partially offset the winnings via a gambling loss deduction. The result is paying taxes on “phantom” income.
The article mentions that no one came forward in opposition to defend the gambling loss deduction. I’m surprised the local casino lobbyists did not make any fuss.
Oklahoma Gambling Losses
The initial impact won’t be felt until April 2015, when taxpayers in Kansas have a balance due on their 2014 Kansas tax returns due to gambling winnings. All it takes is one unhappy taxpayer to make a large fuss about it. That’s when Kansans could be tempted to travel outside the state to gamble or turn to other forms of entertainment.