12/08/2012 9:45AM

Texas 'ten percenter' accused of cashing 1,445 tickets for other gamblers

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A Dallas man has been charged with cashing approximately 1,445 Internal Revenue Service tickets on behalf of others during a three-year period at Lone Star Park. The winnings from tax forms Willie L. Loveless filled out from February 2008 to November 2010 totaled more than $1.69 million, according to a federal indictment. Loveless, who was taken into custody, had his first court appearance on Dec. 4. He pleaded not guilty and was released on bond, according to court officials.

The indictment alleges that Loveless was involved in “ten percenting,” a practice by which a winning gambler “arranges for another individual to cash the gambler’s IRS ticket so the gambler can avoid taxes on the winnings,” according to the indictment. A winning ticket over a certain level of payoff at a racetrack requires tax forms to be filled out before cashing.

Loveless allegedly signed off on tax forms that stated “no other person is entitled to any part of these payments.” Loveless has been charged with 20 counts of fraud and false statements on Form W-2G, and each count carries a maximum penalty of three years in prison. Loveless was also charged with “corruptly obstructing and impeding the due administration of internal revenue laws,” according to the indictment.

In 2008, Loveless allegedly signed approximately 547 forms for winning tickets worth a cumulative $692,681 in winnings. In 2009, he allegedly signed approximately 513 forms worth winnings of $635,681, and in 2010, approximately 385 forms worth winnings of $432,728.

Lone Star officials could not be immediately reached for comment.

Ponies Payme More than 1 year ago
Mary, can you print the chart for the horse named Oak Tree that won at Keystone/Philadelphia Park about 15 years ago. Second time maiden starter who flashed speed and quit his first time out, if I remember correctly.
Henry Vincent More than 1 year ago
the tax is 300 to one not six hundred to one.this is taken out on exacta bets six pick bets,etc.
Ponies Payme More than 1 year ago
Win bets too. I once had win money on a horse at old Keystone Park on a horse called Oak Tree that went off at 297-1 (plus or minus) and got taxed.
Henry Vincent More than 1 year ago
this guy is going to do some time for his ten percent actions.plus he will be fined aconsiderable amount of money.when you run a scam on the irs you are a target.
De Tiernan More than 1 year ago
If this guy is running the 10 percent scam, hes obviously hanging out at the track all day, and most of the guys ive know running this are bust out degenerate gamblers. So going after this guy is a waste of government resources. Now he'll be jailed on our dollar. And there is no way in hell they'll ever see any amount of fine from him. Just more government waste.
Joe Rotell More than 1 year ago
i hit a super at arlington park 10 times for a dime each bet , the super came back 552 dollars, x 10. you think i beat the taxes, nope. they called it bundling because all 10 bets were identical and i still had to pay taxes on it. so in the future if your ever going to do something this add another different horse somewhere in the wager
Ponies Payme More than 1 year ago
You mean to tell me that you were smart enough to place the bets in $0.10 cent increments, but not smart enough to get separate tix? Wow. Bad more. Repeat after me............. "repeat beat" "print" "repeat bet" "print" "repeat bet" "print'. If you put the same ticket on a slip 5x, it counts as ONE WAGER. If you put the bets on separate slipd, they are separate wagers ans can be run through the kiosk and cashed as one lump sum, TAX FREE. EXAMPLE: you can hit a $0.10 cent super for $599 on SEPARATE tix. Just run all 10 of your tix through the kiosk and then cash out the $5990 at the window.
De Tiernan More than 1 year ago
Maybe instead of wasting taxpayer dollars going after guys like this the IRS can pass a rule that if you DO NOT WANT TO SIGN up for you winning ticket that you can bypass the paperwork and hand over the 10% immediately to the IRS. No questions asked. Or you can do the W2G and proper paperwork and tax filings and save yourself the 10%. This way it takes the degenerate 10%er's out of the equation and the IRS can go after real criminals that evade taxes..
De Tiernan More than 1 year ago
For your information. All winning wagers,regardless of amount are considered income. That $2 show bet that pays $2.10. According to the IRS that 10 cents is income.
chad mc rory More than 1 year ago
Stick it!
De Tiernan More than 1 year ago
I was just making a statement. I am not for this. I don't understand why the IRS wastes time and money to go after this guy. Now the taxpayers have to pay to incarcerate another person whose crime was victim less. Basically EVERYONE who gambles and doesn't report it as income is committing the same crime. They could arrest all of us. There is so much wasted effort with the whole W2G process. The tracks have to pay someone to fill out the W2gs, then they probably have someone else enter the documents into the computer, then they probably have someone in accounting send the withholding to the IRS, then the IRS has do the same. Then gamblers have to file and if they itemize their deductions they get all of the withholding back anyway. So it's a big waste of paperwork and taxpayer money. Gambling on horseracing should be TAX FREE. PERIOD.
chad mc rory More than 1 year ago
Apologies... I should have said the IRS can 'stick it'.
rvraynmary More than 1 year ago
Is it illegal to buy a bunch of minimum-bet tickets on exotics and win big? I know a lot of bettors who do this. Including me.
Ponies Payme More than 1 year ago
Heck no..... I do it all the time. It is within the IRS rules.
sol rivera More than 1 year ago
As I have stated in my book "WINNING LONG SHOT ANGLES" as horse players it must be our primary goal every time we open the Daily Racing Form, that the end result must be to make a trip to the IRS WINDOW. Without these scores that require taxation, we will be regulated to remain regular every day players that are sure to lose in the long run. In doing so we must abide by the rules as they are today. After all, where else can one place a wager in a fifty cent increment and walk away with over 10K.
Ponies Payme More than 1 year ago
Your comment makes bn sense ((Without these scores that require taxation, we will be regulated to remain regular every day players that are sure to lose in the long run.)) Pick more winners, then.
Ponies Payme More than 1 year ago
What all you whiners here neglect to see is that if I am cashing these tix and paying someone 10%, as I do, 1) Why would I want to play win/place to avoid winning a taxable tix and win LESS money? 2) I am makin money, so why would I complain about paying taxes on it 3) Just do what i do and in your minds the money you "save" by playing the supers in 10 cent denominations and the P3's and P4's in $0.50 amounts and such should make your mind at ease by avoiding taxes on "cheaper" wins. 4) The bottom line is this. Where else can you (besides a poker table) sit down and have the knowledge to take advantage of odds that are completely wrong in every race and use that knowledge to make a profit that is litterally tax free? If every once in a while you have to pay a little tax - who cares? If you are moronic to "gamble" on horses and make that hit every once in a while then you basically are donating on a yearly basis anyway and shouldn't be complaining for doing domething you do not have the knowledge to win at anyway.
russell More than 1 year ago
I agree with most of what you say PP but how do you handicap horses to finish 3rd or 4th? If you can do that you are better than me. It becomes more about luck and gambling, handicapping for 3rd and 4th. Thats why I don't do it. And by gambling I kinda mean what Steve Crist does. Eliminating horses that can't win and using a lot of big combos. Maybe that is handicapping but not for me.
Ponies Payme More than 1 year ago
I handicap. Plain and simple. Much better than Steve Crist, also. I've preached this in most of my posts here..... Pace. When you learn pace, the 3rds abd 4ths look much clearer. It is hard not knowing how much a quitter will quit and a closer will close, but when you know the 1/2 and 3/4 times in a route race BEFORE the race is run, it becomes evident how much. 99% of the poster here are clueless as to why horses win. I watch a race and see horses that got a badly paced race and see who "should have won", which is more important that who DID win sometimes. I play 75% Supers, most of which consist of the "all" button in the 3 spot. Then again, you have to be able to pick a high percentage if winners to do this.
russell More than 1 year ago
Good luck PP. Supers aint my game and hitting the all button is gambling. As for PACE its completely different in dirt and turf races, especially in NY. Pace is more consistent in California. And a lot more bad trips are on turf than dirt. I watch the horses come off the track after a Belmont turf race and some aren't even blowing hard because after 6f in 1:16 and change they couldn't close fast enough and arent even tired.
Ponies Payme More than 1 year ago
OK....So what you are talking about is PACE, plain and simple. You just dont know how to use it, I suspect. (not trying to be rude) As for hitting the all button being gambling....I don't believe so, because being able to pick the 1-2 spots on a regular basis is not easy, as I am sure you know. By using my 2 or 3 or 4 horses i handicap to be third in the fourth spot, i allow a long shot to sneak in and raise my winnings,.....Heck, sometimes the quitters don't quit enough or the closers do close enough and I can catch the horse that "hangs"....After all, if I have 3 horses in the third spot, I should just as effectivly be able to put them in the 4th spot and win just as often if I handicap correctly. And when i say "ALL", i generally throw out the 2-3 mutants in each race. In a 12 horse field, I am p[laying each super combo for $6, as i have 3 spots filled and the other 6 horses in the 3 or 4 spot. The $1 super just about always vastly out-prices a $6 straight exacta. You seem to understand racing. Been playing long?
Ponies Payme More than 1 year ago
If he sat next to me all last year, they would put him to death for the amount he owed!