Taxes on Your Gambling Winnings – You Owe Uncle Sam a Piece No Matter How Much You Won

When you’re gambling at a casino, you may win a few bucks here and there and leave with more dollars than you brought with you. It may be as little as $20, or as much as $1,000. When cashing out you were never presented you with a form to declare your winnings to the IRS. If you think you’re home free, think again. As a U.S. citizen, you owe Uncle Sam a piece of the action regardless of the amount. Many players think that just because they were not given a tax form there’re home free. Not so.

So, what does get reported to the IRS? Larger amounts that are won at gambling establishments such as casinos, lottery retailers, horse race tracks and off-track betting parlors. They will issue a form W-2G, one copy to you and one to the IRS. Here are some details:

Machine Games

$1,200 or more won at a slot machine, video poker, video keno, video blackjack, etc. This only applies to a single jackpot payout amount. Accumulated credits are credit meter wins and do not count.

$1,200 or more won at a live bingo game will also trigger a W-2G, and $1,500 or more at a live keno game (minus your wager amounts).

The casino will not withhold any gambling taxes from awards in the $1,200 to $1,500 range provided you present a valid photo ID and social security number. If you do not provide this information, 28% will be withheld.

Live Table Games

Winnings from live table games are not reportable on a W-2G, except if there is a very large prize amount offered for a small wager, such as a dollar bet for a shot at a progressive table jackpot, where the winning odds are over 300/1 and the win is more than $600. For example, Caribbean Stud offers a huge progressive jackpot for wagering only $1, if you’re lucky enough to hit a Royal Flush.

If you win $600 or more in any other wagering game, such as horse, dog racing or sports betting, and the amount is at least 300 times your bet minus your wager amount, the establishment will gift you with a W-2G. If your winnings exceed $5,000 and the amount is more than 300 times your bet, 25% will be withheld. The same withholding percentage also applies to any cash prize of $5,000 or more in poker or other card tournaments minus the buy-in amount.

Winnings on state lottery games such as lotto, numbers, scratch-offs, etc. can be collected at your local retailer up to $600. Any more and you’ll have to visit the main lottery office in your community, where a W-2G also awaits you. This information is from the New York lottery. Other states may have different rules.

Winnings on Daily Fantasy Sports (DFS) contests at this time are considered games of skill. DFS sites will issue a 1099-MISC, not a W-2G for winnings of $600 or more.

Video Lottery Terminals (VLT)

$600 or more in winnings from any class II ​Video Lottery Terminal game will also invite a W-2G. This includes any winnings on machines at jurisdictions that are operated by a state lottery. For example, New York State has nine race tracks with VLT’s that are pseudo slot and video poker machines.

Deductions

The good news in all of this is that gambling losses are tax deductible but only up to the amount of your winnings, and only if you itemize deductions on your tax return.

The IRS wants to make sure that you indeed lost what you claim you lost, so a record of all your losses is required. Win- loss statements are available from most major casinos at the end of the year, provided you used your player’s club card when playing machines. Save those losing scratch-off tickets, Lotto, Powerball, and Mega-Millions tickets, daily numbers, Quick Draw, OTB, etc.

For losses on Daily Fantasy Sports contests, the IRS position at this time is unclear. Because of the skill factor, your winnings are in the hobby category. Therefore, any losses would not be deductible, although this situation could change at any time.

You don’t have to record the tickets on your tax statement, but they may be necessary if you are audited. All the IRS wants to know is the type of wager, the amount of the bet and the date of the transaction.

Always play it safe and check with your tax preparer for your personal needs.

Casino Gambling Tips And Tricks

Thinking of going to a casino to try your luck? You might want to read this article first.

Casino gambling tips and tricks:

  • The first step for any want to be casino gambler is familiarity with the gaming tables. Before you even begin to think about Casino Gambling, look at the different machines at the casino. Generally, players like to stick with a few favorite games. Pick a few games that you feel you will be good at.
  • Always play games that you can afford. Affordability is not always what it seems. For instance, just because it reads $.05 cents on a machine, it does not mean your betting amount is limited to $.05 cents. What it means is you will be playing $.05 cents for every line. Your max bet on the same machine would be $2.50 per spin. It’s easy to see how money tends to run away from you in casino gambling if you are not careful and do not set a budget before you enter the casino.
  • Always take a fixed amount of money with you. Leave your credit cards behind. Once you fix your budget, you need to choose your machines carefully. This can be done only through close observation and some amount of trial and error. Never go in for high stakes until you are absolutely sure of the games and the amount of money required.
  • Before you play, it is important to choose the right slot machine. In general, slot machines give you 95-98% chances. The only way to find out whether a machine is good is to play it! Spin the reels a couple of times and if you are not ahead or even, leave that machine and go for the next.
  • Preparation is the biggest tool in your armor. Research as much as you can about the game before you put your money on it. You must be very clear about the basic rules of the game.
  • Casino gambling is addictive. It eggs you on with the adrenalin rush. What with the buzz in the atmosphere and the amount of money changing hands, it is easy to get carried away. But, a good player does not play arbitrarily. Instead, their game is controlled and restrained. They are calculating all the time and will not take unnecessary risks.
  • Do not keep betting if you are on a losing streak. Whether you believe it or not, accept the fact that some days are not just your day. If you are losing continuously, then, it is better to stop playing and come again another day.
  • Above all, enjoy your game. You don’t want to wager your money and NOT enjoy it!

Casino Games Are Ultimate Fun

The internet has been providing millions of people all over the world in numerous countries with endless hours of leisure. People are now searching the internet for entertainment. Hundreds of eager casino players who were earlier thronging land based casinos for fun and excitement have now turned to the internet. The casino game, which has been introduced online, has been providing endless hours of fun and excitement to hundreds of eager fans.

It is now possible for eager casino game players to log on to websites that offer free casino games. There fore the fear of losing any money is simply not there while they enjoy countless hours of fun and pleasure playing different types of casino games online. Playing online casino games allow players to quit whenever they want while players enjoy and feel the thrill of playing at real live casinos but free.

Playing casino games online will help you as a player develop different strategies for the various games. As hours of endless playing, would help you hone your skills at any particular game.

Playing at a free casino game site would allow you to sharpen your gaming skills without you as the player having to think about losing real money. The money used here is virtual money and this gives you a sense of security that you have not gambled away all your hard-earned savings. Learning to pay online casino games has never been more fun.

Online casino games have the most incredible graphic designs that will leave you spell bound to your screen and playing becomes even more exciting and challenging.

These casino games are user friendly and many of these sites do not require players to download anything. All a person has to do to start playing at any online casino game is to log in, sign up to register and begin playing.

Online Casino Gambling in Asia

The concept of online casino gambling had actually began in the islands of Caribbean. It was in 1994 when Antilles Island became the catalyst for the industry of online gambling. It was also on that same year when Antigua, an island located in the West Indies, voted in favor of a bill that will regulate licenses for Internet gambling. Looking back at its origins, you can merely see how online gambling has popularized. And now, those casino sites have been around for along period of time, providing you with the best online gambling experience.

Perhaps one of the areas wherein online casinos have been widely opened is in Asia. Since 900 A.D, Asians have been heavily attached to recreational activities. In fact early Chinese is believed to be the first people who invented playing cards. Aside from having a great passion for gambling, Asians were also equipped with skills that works well in casino table games. They are as well one of the fast-developing markets for internet gambling.

Online casino gambling in Asia has been the hottest topic for industry experts nowadays. They even concluded that the region is the best place for online gambling developments in the present and in the future.

Basically, the development of online gambling in Asia started when the first Asian online casino was introduced in year 2000. However, a series of dilemmas have been encountered before the Asians achieved a fully-developed market. This is probably because some professionals in the industry is heavily restricting the implementation of the said concept. But this didn’t make the Asians hopes down. They even strengthened their aim to make online gambling a regulated activity to prove the government that prohibiting their plans will make no good at all.

As online casinos brought more interest to Asian people, a few casino games were being offered as an online game. Like in China wherein their 4,000 year old card game, Mahjong, is now being played in some online casino sites. And although internet gambling is not fully legalized, Chinese Mahjong players can’t help themselves from entering in sites that offer this ancient game. Moreover, another Asian country that is hardly benefiting from online casino gambling is Japan. Japan is currently under an economical crisis. As supported by the Liberal Democratic Party, the country is looking for effective ways on how to lessen their financial problems. And as a result their government is expecting online casino operators to help them in this dilemma.

Many Asian countries today are tending to adopt a Western theme for their areas. In fact, Philippines and Macau are being called as the ‘Oriental Monte Carlos’ and ‘Little Vegas’.

Casino Comps: Not Only For High Rollers – Everyone Can Get in on the Game, Here’s How It’s Done

Players that often visit casinos are aware that many patrons are comped during their stay. Regulars receive free or discounted rooms, meals, show tickets, free play, etc. Many average players that wager on penny, nickel, or quarter slot machines, bet $5 or $10 per hand at table games, think that the freebies are only for the high rollers. Nothing could be further from the truth.

How Casino Comps Work

Comps (complementaries) are valued at a portion of a player’s expected loss to the casino over time. This is called the house edge. For example, the house edge on Blackjack is about 0.5% when perfect basic strategy is used by the player. This means that a player’s theoretical loss is about 50 cents for every $100 bet. Players can win too, but that’s gambling. However in the long run over time, the house always wins, and comps keep players coming back.

How to Get Casino Comps

Sign up for a Players Club card without hesitation. All casinos offer them at no charge. Each time you use it at a slot machine or table game, you build up points. Of course the more you play the more points you earn. Depending on where you play and your level of play your points can be used towards meals, hotel stays, exclusive event invitations, show tickets, cash back and more. Rewards vary between casinos and are liquid (change often). Always check with the Players Club associates for specifics.

How Comps are Determined

Points on your card are determined by the amount of credit (coin in) at any machine game after you insert your players card in the appropriate slot. The amount you play is not as important as length of time you play. For example, If you put $20 in a quarter slot machine, and you play for an hour or so with it, the amount of coin in could be $100 or more. The amount through put is what counts.

If you play table games, place your card on the table with your cash when you buy-in. The dealer will give it to the pit boss who will record it. The card will be returned to you promptly. Your average bet will be monitored and recorded from time to time during your session.Once again, how long you play takes precedence for comp rewards.

Once you’re established as a steady player you’ll receive offers in your mailbox(snail mail and/or e-mail).

If you’re a table game player that wagers $25 per hand and higher, ask the pit boss to rate you. S/he will keep track of your average bet size for as long as you play. If you play for two or three hours always ask if you’re entitled to any comps.

For table games,the comps players receive depends on the game you’re playing. For example, three hours of Blackjack at your theoretical loss of 0.5% will earn you less in rewards than three hours of Caribbean Stud Poker, where your expected loss is 5.2%.

The same applies to slot and video poker machines. For example, three hours of video poker play will earn you less in comps than the same time at a slot machine, because video poker has a skill element to it, whereas slots do not.

Where you play is also a factor. Playing as a Vegas locals casino could earn you more generous rewards than playing the same amount of time at the upscale Wynn and Bellagio resorts.

When to Talk to a Host

If you’re planning to stay for a few days call the casino and ask to speak to a casino host. S/he can offer you special room rates and will book your room for you. Tell the host what games you play and what your betting level is. You may also want to enquire about making an upfront cashier deposit. For example, if you’re staying for four days and deposit $2,000, you can draw out $500 a day to prove your betting level. If you’re playing tables get to know the pit crew(s). This can go a long way with your host relationship.

Remember, always be a responsible gambler. Always let the casino comp your play. Never play just for comps.

Good Luck!