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View Full Version : So, is this a win anybody should care about?


JustRalph
02-27-2015, 07:23 AM
http://www.bloodhorse.com/horse-racing/articles/90353/north-dakota-may-owe-bankrupt-adw-millions

North Dakota owes ADW millions......

Does this alter any current law or such?

HUSKER55
03-01-2015, 11:56 PM
I am thinking that alot of ADW's may not be following the tax laws on such matters like this. There are lawyers who specialize in this department, {taxes}, so I am thinking this is not a simple process. Throw in the IRS and I am pretty sure it is murky at best.

What is needed is a national streamlined approach that does not require 8 years of law school. I am thinking this opportunity will help everyone.

But the last 8 years have been stagnant as far as our government is concerned so I don't see any relief or reform on the horizon.

Appy
03-02-2015, 07:13 PM
Hard to imagine how tracks such as those in ND offering purses the size they do, and generating the small handles they do, could owe anyone much of anything percentage based.

startngate
04-13-2015, 07:11 PM
Does this alter any current law or such?No, it doesn't, unless ND hasn't fixed their laws. It only applies to the timeframe referenced in the lawsuit. If they haven't fixed that loophole, then they would also owe a tax refund to every ADW that's been licensed there (assuming there are no more appeals, of course). My guess is they fixed it at some point after the fact.

Track Collector
04-13-2015, 09:57 PM
Hard to imagine how tracks such as those in ND offering purses the size they do, and generating the small handles they do, could owe anyone much of anything percentage based.

This has nothing to do with those tracks.

Mr. Wagner had an account with an ADW (Advance Deposit Wagering) company located in North Dakota. He had an account balance of around $2.5 MD at the time the ADW filed for bankruptcy. If the article is factually correct, the state incorrectly/illegally collected tax from the ADW which will need to be returned bankruptcy estate.

Mr. Wagner will then be able to collect some/all of his $2.5 MD, depending on where he falls on the creditor list. With few exceptions, liquidated assets are paid out to those are owed the most first.

Given that Mr. Wagner is not the only one who is owed money, I suspect others owed a significant amount of money will be happy to see payment on monies they thought long lost!

Inner Dirt
04-14-2015, 10:49 AM
Why would anyone allow $2.5 Mil to sit in an online gambling account?

startngate
04-20-2015, 01:13 PM
Why would anyone allow $2.5 Mil to sit in an online gambling account?

Mr. Wagner's wagering level probably required it. Several stories written about the case indicated he was betting over $130 million / year at the time, so that's in line with a normal churn rate of 7x.

Given he was also being rebated, it was probably closer to 10x in reality, but given the sheer volume he was betting it's not particularly shocking, unless the reports were inaccurate.

AndyC
04-20-2015, 06:07 PM
..... Mr. Wagner will then be able to collect some/all of his $2.5 MD, depending on where he falls on the creditor list. With few exceptions, liquidated assets are paid out to those are owed the most first...

It is my understanding that claims against a bankruptcy estate are (by law) prioritized by the type of claim. For example, a secured creditor would get paid before an unsecured creditor. Mr Wagner would be in the same class of claims as any other account holder with an unpaid balance. If there is insufficient money to pay the class of claims that includes the account holders, they would all be paid on a pro-rata basis with the remaining money.

Track Collector
04-20-2015, 07:27 PM
It is my understanding that claims against a bankruptcy estate are (by law) prioritized by the type of claim. For example, a secured creditor would get paid before an unsecured creditor. Mr Wagner would be in the same class of claims as any other account holder with an unpaid balance. If there is insufficient money to pay the class of claims that includes the account holders, they would all be paid on a pro-rata basis with the remaining money.

Thanks for sharing....I learned a few new things!

Wagner's company believes there could be in excess of $11 MD in illegal tax withholdings from the ND ADW, and the state had proof of claim of over $6 MD, which I would think included Wagner's money. If these figures are relatively accurate, I'm betting that Wagner gets all his money back.