Another issue, say you win $10,000 one year and lose $5,000 the next two years. You just broke even, the $10,000 that first year was just dumb luck. But you get to pay taxes on the phantom $10,000 gain but get no carry forward losses on your losing years (like you would in stocks or cryptocurrency for example). Gambling losses cannot be used to offset other gains and cannot be carried forward to other years. After taxes you are actually a loser instead of the breakeven you thought you had. One way around this problem, to some degree, is to make sure you play at least Nzero (variance/edge/edge) hands per year, at least you substantially reduce this no loss carry forward penalty for gambling. At Nzero hands your odds of winning are about 84% with a 16% chance of losing (even though you have a "long term" edge). Dunbar generated a table of Nzero values at west-point.org/users/usma1955/20228/V/Bank_NO1.htm
Posted by: nightoftheiguana2000@yahoo.com
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