In Holland, gambling is NOT taxed, but then again our taxes are higher than in the US. Still, this also explains why the government even allows smoking in land based casinos and it is still allowed to play there while it is (still) so difficult for Americans to gamble online (no tax income for the government)."
"
All in all, it sounds quite complicated with those winnings. I mean, you have lost in the past, so can you deduct those losses from your income? Don't think so, so IMO that's unfair, but I don't know that much about it. How can you prove that you have lost say 20 K in one year?