lily
05-29-2008, 11:03 PM
Works for me! Even the example of the man buying $2,000.00 worth of chips, losing and then still cashing in his remaining $1,000.00......of you got money to gamble, you've got money to pay your back child support. (http://www.msnbc.msn.com/id/24871567/)
Deadbeat parents face loss of casino winnings
W. Va., Colo. plan to seize jackpots from people who owe child support
updated 9:28 a.m. ET, Thurs., May. 29, 2008
MORGANTOWN, W. Va. - Deadbeat parents, listen up: Win big at the casino
tables in West Virginia or Colorado, and your kids might win, too.
The two states are moving ahead with plans to garnish the winnings of casino
gamblers who owe child support. West Virginia's Department of Health and
Human Resources is working on a plan that could be in place within 90 days,
while Colorado is rolling out its system July 1.
The proposals are another tool in a diverse arsenal that authorities already
have to collect money from delinquent parents.
"We impose the same burden on banks; they must search their records. We do
the same thing with brokerage houses and other businesses. Welcome to the
club," said state Rep. Joel Judd, a Denver Democrat who fought for five
years to overcome industry opposition and win approval from legislators.
"I'm not aware of any place else in society where we have large cash
transactions like we do at the casinos," Judd said. "It just seemed to me
that if a guy owes back child support and wins big, the kids ought to get
the money."
Unenforceable?
Colorado's plan faced significant opposition from casino operators who argue
it is difficult to track table winnings, and West Virginia is hearing the
same. Critics say the programs impose an undue and unenforceable burden.
"A person could actually come to the casino, purchase $2,000 worth of chips,
cash out $1,000 worth of chips, and it would look like he won $1,000. But
the truth is, he lost $1,000," said West Virginia Racing Association
President John Cavacini. "There's no system in place that would compute
winning and losing."
Currently, the Internal Revenue Service requires casinos to report large
payouts — over $600 on most forms of wagering, over $1,200 on slot play —
but Cavacini said it is the obligation of the gambler to report income from
table games.
The IRS also requires casinos to report cash prizes over $5,000 in
tournaments and non-cash prizes worth more than $600.
Budget problems
While many states check big winners of traditional lottery games against
lists of people who owe child support, the National Conference of State
Legislatures believes Colorado and West Virginia would be first to go after
casino winnings. Mississippi and New Mexico have statutes allowing casino
payouts to be intercepted for child support debts, but neither is doing so.
Budget problems stalled development of an electronic interface in
Mississippi, where child support officials also couldn't get an agreement
with the casinos, said Stephanie Walton, a program manager for the National
Conference of State Legislatures.
The New Mexico Department of Human Services, meanwhile, can track winnings
and match them to a list of delinquent payers, but it has no way to collect
the money. Spokeswoman Betina Gonzales McCracken said the state simply
gathers information on payouts over $1,200 as evidence for court hearings.
Nor is there any way to predict how many people such systems would snare:
Casinos are tourist destinations, and each state checks names and Social
Security numbers against only its own database.
In the Colorado and West Virginia systems, casinos would garnish the
winnings of delinquent gamblers on the spot — a prospect Judd said operators
found unappealing.
"I told them, there is no other line of business better equipped to handle
an angry customer than yours," he said.
Deadbeat parents face loss of casino winnings
W. Va., Colo. plan to seize jackpots from people who owe child support
updated 9:28 a.m. ET, Thurs., May. 29, 2008
MORGANTOWN, W. Va. - Deadbeat parents, listen up: Win big at the casino
tables in West Virginia or Colorado, and your kids might win, too.
The two states are moving ahead with plans to garnish the winnings of casino
gamblers who owe child support. West Virginia's Department of Health and
Human Resources is working on a plan that could be in place within 90 days,
while Colorado is rolling out its system July 1.
The proposals are another tool in a diverse arsenal that authorities already
have to collect money from delinquent parents.
"We impose the same burden on banks; they must search their records. We do
the same thing with brokerage houses and other businesses. Welcome to the
club," said state Rep. Joel Judd, a Denver Democrat who fought for five
years to overcome industry opposition and win approval from legislators.
"I'm not aware of any place else in society where we have large cash
transactions like we do at the casinos," Judd said. "It just seemed to me
that if a guy owes back child support and wins big, the kids ought to get
the money."
Unenforceable?
Colorado's plan faced significant opposition from casino operators who argue
it is difficult to track table winnings, and West Virginia is hearing the
same. Critics say the programs impose an undue and unenforceable burden.
"A person could actually come to the casino, purchase $2,000 worth of chips,
cash out $1,000 worth of chips, and it would look like he won $1,000. But
the truth is, he lost $1,000," said West Virginia Racing Association
President John Cavacini. "There's no system in place that would compute
winning and losing."
Currently, the Internal Revenue Service requires casinos to report large
payouts — over $600 on most forms of wagering, over $1,200 on slot play —
but Cavacini said it is the obligation of the gambler to report income from
table games.
The IRS also requires casinos to report cash prizes over $5,000 in
tournaments and non-cash prizes worth more than $600.
Budget problems
While many states check big winners of traditional lottery games against
lists of people who owe child support, the National Conference of State
Legislatures believes Colorado and West Virginia would be first to go after
casino winnings. Mississippi and New Mexico have statutes allowing casino
payouts to be intercepted for child support debts, but neither is doing so.
Budget problems stalled development of an electronic interface in
Mississippi, where child support officials also couldn't get an agreement
with the casinos, said Stephanie Walton, a program manager for the National
Conference of State Legislatures.
The New Mexico Department of Human Services, meanwhile, can track winnings
and match them to a list of delinquent payers, but it has no way to collect
the money. Spokeswoman Betina Gonzales McCracken said the state simply
gathers information on payouts over $1,200 as evidence for court hearings.
Nor is there any way to predict how many people such systems would snare:
Casinos are tourist destinations, and each state checks names and Social
Security numbers against only its own database.
In the Colorado and West Virginia systems, casinos would garnish the
winnings of delinquent gamblers on the spot — a prospect Judd said operators
found unappealing.
"I told them, there is no other line of business better equipped to handle
an angry customer than yours," he said.