The culture of laundering money in the Bitcoin network is so prevalent there is even a website called bitlaunder. In , Microsoft ‘s Director of Corporate Affairs sent a letter to the Reserve Bank of Australia asking, «whether the domestic payments infrastructure could be modified or adjusted in some way to facilitate and manage the exchange of value beyond traditional currencies». Each taxpayer will be in a unique position of course, but for minimal gaming losses, you may not be able to shelter the gaming income at all. Ulbricht , S1 14 Cr. Even with the additional expense deductions, it may not end up to be worth it. If you become a truly successful sports bettor, the consequences of not reporting your income can be pretty disastrous.