Games for Money

Backgammon is one of my greatest passions in life.
To me, it’s substantially more involved than chess because dice are involved and so the next few moves can’t really be planned out. Randomness is the best way to screw up plans.

So obviously I was truly looking forward to the Marbella Gathering, a $1 million dollar event with a €10,000 buy-in. That’s $1 million american dollars to the winner, plus sidegames, other gambling, etc. I’ve written elsewhere about how I figured I could get by with about $18,000 for the event (since the Euro is about $1.30- $1.40), which would also entail me hobnobbing with British Royalty and presumably Arab royalty. That amount included staying at the Marbella as well as airfare and food and the purchase of a tuxedo as well as about a grand for “penny ante” sidegames.

BUT - and there’s always a but.
No, not the “but I don’t have $15,000 to enter a backgammon tournament” - but the event’s been postponed thanks to the Spanish Government.

The Marbella Backgammon International Club regrets to announce that the planned inaugural event featuring the Palamedes Challenge Cup for US$1 million has had to be postponed.

This postponement is for the benefit of our participants. The Spanish Tax Agency – The Hacienda – has today advised us that in addition to paying 16% IVA on the Tournament entry fee Players could be liable for withholding tax of up to 35% on any prize money won in excess of €600. This clearly would be unacceptable for our participating Players and could not be absorbed by the Tournament Organisers as a cost of staging the event.

A final updated written statement of the taxes liable will not now be received from the Hacienda before April 4th . This would be too late to postpone the Tournament if the written ruling is as indicated.

(emphasis mine)

This is obviously the richest sanctioned play available. At the time I was looking into it they’d already had 111 people signed up in the first week of availability. 111 and I’m sure that number went up later.

I’m disappointed to say the least. I was looking forward to really analysing the gameplay. Not to mention envying the winner.

On the other hand, there are a few points to consider:

Facts:

1. a tournament payout in American dollars at a Spanish Resort organized by British
2. the website promoted how all of the VAT would be returned for non-Spanish entrants
3. the Spanish Tax Agency is called “The Hacienda” making it sound like some central american code for “kickbacks”
4. Travelling with more than $100,000 in American Cash will cause problems at *any* border, especially the American one.

Speculation:

1. probably 30% of the entrants are tied to “extralegal” businesses, such as gun running, oil trading, etc.

Nothing about this says “squeaky clean and 100% above board”

I’m just wondering why the payout wasn’ t made in diamonds. Easier to get across borders, no worries about exchange rates, etc.

brother9 wrote this on April 7th, 2005 and filed it under Gambling |