In April, 2021, the Internal Revenue Service (IRS) notified the European Commission that it was considering recognition of the European Anti-Fraud Organization (EAO). The decision was met with a strong letter from the Commissioner for Competition, Mr. Pascal Lamy, who also happens to be the holder of UFA Television Licensing. The commission referred to the European Anti-Fraud Organization as UFA.
In recent years, the world has become a much safer place to wager on sporting events including football, soccer, hockey, basketball, tennis, golf and motor racing. This is due in large part to the implementation of stricter gambling laws in different countries around the globe. With the introduction of UFA, betting on European sports such as football, rugby, golf and tennis could no longer be done through licensed sportsbooks.
However, these days, many people are turning to online sportsbooks as a viable option instead of relying upon bookmakers. Online bookies have been in operation for years now and continue to face stiff opposition from the authorities, who see them as potential tax fraudsters. They have been fined numerous times and there is even the threat of prosecution being brought against the operators. However, as with all things, there are tax advantages to bookmaking online. Here is how they work:
Under the terms of the Unites States law, both bookmakers and advertisers are required to register under the Uniform Sales Facsimile Code of Conduct with the IRS. Advertisers, in return for being permitted to post UFA paytees on UFA-approved websites, may be liable for taxation on any UFA winnings. This is the UFA Tax Identification number, or TIN. UFA receipts and statements are also issued by the National Association of Securities Dealers (NASD) and Financial Industry Regulatory Authority (FINRA).
The Internal Revenue Service allows sportsbooks to post a TIN but not share it with third parties. However, not all sportsbooks will do so. There are two reasons for this. One, there are many bookmakers that will not share their TIN because they are only in business to make money themselves. Two, not all sportsbooks are required to be licensed by the SEC or the FINRA and so will not be subject to the same taxes that others are.
As far as the tax advantages to using a sportsbook lies, they can be significant. The sportsbooks benefit from reduced losses as the sportsbooks do not need to post their UFA winnings on their own websites. Also, they do not need to pay taxes on any winnings. All in all, it appears as if there are some clear tax advantages to sportsbooks, however, they still need to be licensed by the relevant authority and comply with all other applicable tax laws. If you find that you are considering placing a bet on an NFL game and you are not licensed to do so, then you may want to wait to place your bet until you are licensed.