The Restrictions on Taking Pictures of Slot Machines and Your Winnings

Have you ever tried winning a huge amount of money on a certain slot machine and wanting to take a picture of such a win to either brag to your pals with or to simply prove to friends and family that you did indeed hit a huge pay day with such a machine? A lot of people have and while the urge to do so is there and the technology is at your fingertips with the use of your very own mobile phone camera, a lot of casinos actually frown on people who take pictures of slot machines. Most casinos actually don’t allow people to do this as per their rules and when they find somebody doing so, this person is often warned by casino security and told to erase whatever pictures they took in front of the security personnel of the casino or they are told to not do that again. Repeating this offense usually results in your being told to leave the casino or to surrender your camera phone for the duration of your stay in the casino.

The reasons that some people state when it comes to the rules regarding the restrictions behind taking pictures of slot machines and videos inside the casino often include security reasons, privacy reasons and marketing strategy protection. When it comes to security reasons, very few security personnel actually explain why it is against the rules for people to take videos or pictures of what is going on when they are playing these slot machines. People are just told that it is not allowed and that security reasons are often cited as the basis for such a restriction.

When it comes to privacy reasons, this is usually enforced to protect the privacy of the people who are in the casino. Some people do not want others to know that they gamble or that they go to a casino. This is usually true for celebrities and certain high profile individuals who feel that they will get some kind of negative feedback from people who see them in gambling institutions like casinos. Since these celebrities want to protect their names or their reputations and do not want others to know that they gamble, the use of cameras and taking pictures inside the casino is often prohibited and since these celebrities spend huge amounts of money inside these institutions, the casinos often give them what they need in terms of privacy.

When you cite marketing strategy secrets as the reason why pictures of slot machines are not allowed by casinos, you may wonder, what strategies are there to protect? Since there are a lot of casinos that compete for the money that people bring in to gamble on their machines, marketing strategy actually plays a big role here. The placement of certain machines that slot machine players find irresistible and spend huge amounts of money on is often the result of careful study and the people who place these machines in the strategic areas of the casino where they are found are usually paid huge amounts of money to do what they do. Having other casinos get a hold of such machine placement strategies can greatly affect the income of these establishments which is why the prevention of picture taking in them is often enforced.

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.