http://www.honoluluadvertiser.com/article/20090729/NEWS01/907290363/Hawaii+residents+now+taxed+on+Vegas+winnings+even+if+they+lose

Wednesday, July 29, 2009

Hawaii residents now taxed on Vegas winnings even if they lose

Under new law, state will tax all winnings

A Hawai'i resident who wins $10,000 in a year, for example, and loses $9,000 in the same year used to be taxed only on the $1,000 in net winnings. Under the new law, that resident would be taxed on the full $10,000 in winnings.

Even if you end up a net loser, you will still be taxed on whatever you won along the way.

Dennis Kohara, a certified public accountant in Honolulu, called the law "ridiculous."