Is there a clear definition in federal law regarding legality of online casinos? NO. This unclear stance of the federal law is creating confusion among people while filing their tax returns. 
Moreover, Department of Justice is posing in a peculiar manner by treating online gambling as illegal. But as per Federal law is concerned, there is no law in the US still now that prohibits online casino gambling. This is the reason many online players are finding it tough to judge whether to file tax returns on earnings from online casino gambling.
In an article published in Wall Street Journal, it has been stated that IRS does not have any policy regarding online casino gambling. IRS puts everything under the wagering group of tax returns. All winnings of an online gambler needs to be declared and losses are deductible. The concerned article also points out that there are some states which are not as accommodating as the other US states. One of such state is California. According to the the spokesperson of the taxation department of California, taxpayers are solely responsible to provide proof of deduction. The obvious meaning of such a policy is that the winnings of an online gambler remains taxable while no credit is given to losses.
It is significant to mention that a total of six states have denied online casino gambling in entirety. But in the rest of the states the confusion persists. Thus, it has become very important for every US state to clearly mention the status of online gambling to clear the doubts regarding taxation on online gambling.
Tags: federal laws on online gambling, online casino, online casino status, online ga, online gambling, online gambling tax, regulation on online gambling
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