Q:
I saw an interesting scenario online recently. A slot player triggered a bonus with multiple free games. They were unable to sit through the entire bonus round due to time constraints and "sold" the remaining bonus round to a nearby slot player for a specific cash amount. Is this practice allowed by the casinos? Are there any legal implications to consider? P.S. At the end of the bonus round, the slot player who paid for the remaining bonus round was able to recoup their investment, plus some.
A:
[Editor’s Note: This answer is written by blackjack and online-gambling expert Arnold Snyder.]
I’ve never heard of a slot player selling his bonus rounds to another player and I suspect this situation is so unusual, it's unlikely that it would violate any house rules or gaming regulations.
I have seen blackjack players "sell" their hands to other players and I’ve never seen a dealer or pit boss disallow it. (Not that this is common, but I’ve played so much blackjack that I’ve witnessed just about everything that can happen at a table.) I’ve also observed many players make side bets with each other on hands at both blackjack and poker. I’ve never seen a casino disallow this type of gambling.
The only "legal implications" I can imagine in the slot situation you describe would be tax consequences, and those would only occur if the ticket cashed out is for more than $1,200, in which case the casino must get your Social Security number and fill out a W2-G to report the amount of the win to the IRS. In many cases, the casino will also withhold 25% of the win for the IRS.
If the way you "buy" the bonus spins is by paying the seller the current cashout value, plus an amount added for the bonus spins remaining, you could be stuck for tax consequences on the full amount cashed out if it’s $1,200+, even if a large portion of that went into the pocket of the player you paid out of your pocket.
Update 21 February 2017
"In regards to the answer about "selling ones bonus round", I was confused with the answer. The statement that if the buyer cashed out a ticket for more than $1200 there would be tax consequences seems only correct if the buyer hit a jackpot of $1200 or more during the bonus spin. I have cashed out vouchers over $1200 that were accumulated over the course of my play with numerous jackpots to bring it to that total and there were no tax consequences. Is this because I mostly play in Atlantic City New Jersey? I know the laws in NY racinos are different and I believe their amount us $600."
"I think your comment that if you cash out a ticket more than $1200 requires a w-2 is incorrect. if you win $1200 or more during one play, the machine locks up and you have to get a handpay and a w-2. But lets say if you win $500 three times during one session and cash out a $1500 ticket, you dont get a w-2."
Snyder responds: "I was assuming, perhaps unwisely, the win of $1200 was on one play during which the purchased bonus hands were used. If there's no danger of going over a $1,200 win on the play with the bonus hands, then you have no worry about getting stuck with a W-2G."
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