Rakeback affiliate taxes and more

[Davidh]

Hi all!

I'm a small stakes regular poker player who make my living from playing poker for more than a year. I've been thinking several times about giving affiliating a serious try.
I'm not a computer wizz and atm I don't intend on building a site promoting poker rooms.
How ever I have a pretty good rb deal and was thinking of offering the same to other players I get in to contact with.

The site I would be promoting doesn't offer rakeback upp front but a cashback vip program. then i would also be offering some of my comission. Is this wice or can i get in serious trouble?

If it is ok I am also thinking about the taxes. If i would say get 30% comission and give 25% back to the players, would I have to pay tax on my 30% earnings or the 5% actual profit i make?

Is it much paperwork to do this?

thx guys

[Stephen]

My thoughts on your questions:

1. So long as the poker room is happy with your markeing idea etc, you should not get in trouble in any way with them. I would suggest speaking to them though, and get everything you need in writing.

2. Re taxes, my first advice would be to speak to an accountant. From an Australian perspective, business profits needs to pay taxes, but any payouts to players would be an expense (provided of course that you physically pay them). Again, I guess other countries have different laws, but it's not worth messing with the tax department.

Stephen

[Davidh]

since they don't openly allow rb deals I'm not sure they would alow me to do so if i asked them but they must be very well aware they have affiliates who offer rb cause there are so many players who still get rb at there sites. Perhaps it is okey for them as long as I wouldn't advertice about it but just sign upp contacts i have?

Yea I think the law is very similar in Sweden about not paying tax on expenses but not sure when it comes to poker affiliateing, is it expensive to speak to accountants?

[Tea Flow]

David,

I understand that you don't want to "out" the poker room you are discussing but you should really get clearance from their affiliate manager before going out and offering an rakeback deal that may violate network rules.

Openness and honest are the best ways to achieve a strong partnership with the poker room in the long run.

[Unknown Webmaster]

Try asking around for an accountant on a local poker forum - That is how I found mine, and I have been very happy with what he has done for me.

I wouldn't expect it to cost more than a few hundred dollars to get someone to give you an explanation of how the accounting and tax part of your business would work. Some may even do i for free.

You may want to have him look over your poker income too, since there may be some extra benefits you are missing out on. Accountants are actually really cheap considering the problems they solve for you.