I am delighted to see that Terry and Brian LeBlanc escaped the clutches of Revenue Canada:
Two brothers who made millions playing sports lotteries won’t have to give Revenue Canada a piece of their winnings.
In a decision issued Thursday in Ottawa, Tax Court Chief Justice Don Bowman ruled the multi-million-dollar fortune Brian and Terry Leblanc accrued by playing sports lotteries may defy explanation, but it was exempt from taxation.
Revenue Canada had claimed the brothers, former window-washers, had somehow found a way to beat the system, and demanded they be taxed as a business.
They are fortunate judges don’t study statistics, as these guys were buying $200K-$300K worth of tickets per week and won millions in the process. Suffice to say if they are winning like that over a long period of time it isn’t luck, and they certainly aren’t compulsive gamblers as the judge described them.
I hesitate to comment on this, lest Revenue Canada appeal the case, but far from defying explanation, their winnings are perfectly logical. The brothers are in fact skilled players who are exploiting poorly calculated odds set by incompetent gaming corporations. In some cases they were likely betting both sides of the same game in different jurisdictions, hedging the odds between different lottery corporations. Good for them, and what they’re doing is perfectly legal, but one has to say Revenue Canada was likely correct. Professional poker and blackjack players have to pay tax on their winnings if they gamble for a living, and this type of skilled sports betting is essentially the same.
While Revenue Canada likely had the stronger case, I’m delighted to see the judge failed to understand basics of the case. I wonder if Justice Bowman would like to join in in a friendly game of poker.