Why Are $1,200.00+ Table Wins Not Taxable?

Please forgive me if this has been discussed before. I was playing Pai Gow Poker @ Grand Sierra Resort in Reno about 2 weeks ago when a lady was dealt a royal flush. As she had $10 on her Fortune side bet, she won $2,000.00, which included the Envy bonus. She tipped the dealer $100 immediately and another $75 when she left the table a bit later - in part, I think, because this win is not taxable.

Why is it that a slot win of at least $1,200.00 is taxable whereas a table win is not? (I assume that if one wins a progressive jackpot, which is an odd amount, at a table game that that is paid in cash rather than chips and that would be taxable?)

-------------------------------------

Jack in San Francisco

Even a $1 win is taxable, a quarter you find on the sidewalk is taxable but these events are not reportable. The IRS has deemed a $1,200 machine hit is reportable and a table hit is not. I have given up trying to make any sense of our tax code and I pay the taxes that I have to.

Today I saw a dime on an asphalt parking lot. This time I didn't pick it up, not because of the taxable event but because it was 106 degrees and I was already too close to hot asphalt.

If I'm remembering correctly, I think that a table win has to be at least 300 (Three Hundred) times the amount of the bet for it to be taxable. And so with a $10 bet (for example), the pay would have to be $3,000 before it became a Taxable Win.

RecVPPlayer

That sounds reasonable, because if someone hits the fire bet and gets all 6 numbers, that is reportable--$1 yields $1000. But 5 numbers is not reportable(1$ yields $250).

WoW!! 8.75% tip...way,way,way too much, IMHO.

Believe you are all wrong. Any and all winnings, from what ever source, IS taxable. What your are confusing is the REQUIREMENT to issue a W2. Any and all machine wins of $1,200 or more requires a W2. $1,200 from a table win does not necessarily trigger a W2.

That's what rockymet said:

Even a $1 win is taxable, a quarter you find on the sidewalk is taxable but these events are not reportable.

-rockymet, this thread, above

Yes, what I actually meant to say was that from what I understand, a W2G on a table game will only be issued (generated) when a Single win is 300 or more times the amount of your bet.

And so when I mentioned needing to have no less than a $3,000 payout from a $10 bet, I meant that this is the point where a W2G would be issued for a payout on a table game.

RecVPPlayer

No, he says that even a $1 win is NOT reportable. The fact is ALL wins, regardless of amount ARE reportable. If one wishes not to report them that is their business.

He goes on to say:
The IRS has deemed a $1,200 machine hit is reportable and a table hit is not.

Which is incorrect. The IRS has required the casino issue a W2 on a machine hit of $1,200 or more but does not require a W2 for a table win of that amount. A table win of any amount, as I said, is reportable by the individual.

Report gambling winnings on Form W-2G if:
1. The winnings (not reduced by the wager) are $1,200 or more from a bingo game or slot machine,
2. The winnings (reduced by the wager) are $1,500 or more from a keno game,
3. The winnings (reduced by the wager or buy-in) are more than $5,000 from a poker tournament,
4. The winnings (except winnings from bingo, slot machines, keno, and poker tournaments) reduced, at the option of the payer, by the wager are:
a. $600 or more, and
b. At least 300 times the amount of the wager, or
5. The winnings are subject to federal income tax withholding (either regular gambling withholding or backup withholding

#4 would be your table game W2-G trigger. Net win $600 or more on at least 300-1 payout.