If you dont tell them anything, how are they going to know.?
Let them catch you first ,then declare all your losses from the past aswell .
They wont want it from both ways.

For a bit of fun ,why not declare some pretend losses from gambling in your next tax declaration & let them knock you back in writing with all the explanations & sub clauses as to why,then keep that letter securly tucked away for whenever you may need it.

If you are betting with the TAB ,you have already paid a TAX so in effect you would be legally be able to claim all of that TAX (16.5%) back if the IRS were insistant that you owe them.
Beleive me , once you start down that line they wont want to know you , too hard.

If you want to run a bogus business to declare, why not say you have a poorly run mail order business selling raceing systems that dont work .

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Cheers.