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Question of the Day - 15 December 2025

Q:

I like to watch some of the online slot players, like Brian Christopher or Mr. Handpay or ... well... there's a few out there. When their wagers are really high, like $1K-$2K per spin, many of their wins, even line hits, are hand pays. Don't they have incredibly complicated personal tax forms to fill out every year? Isn't their accounting a paper nightmare?

A:

Yep.

Jean Scott had to write four editions of a book about this topic to expiate all the grief and hassle she endured over the years from lots and lots of W-2Gs and 1099s, extensive gambling diaries, letter audits, and special situations -- oh, as well as helping gamblers with their own tax returns.  

And Bob Dancer has written extensively about playing high-limit video poker, so high that hitting three-of-a-kind triggered tax paperwork. 

There are any number of associated issues for slot influencers beyond just keeping track of wins and losses. For example, many participate in group pulls, so the division of any winnings have to be accounted for. If they claim professional-gambling status, there are all the travel expenses to track. And in Brian Christopher's case, when he was living in his home country of Canada, there was all the cross-border tax reporting. We remember a blog years ago, in which Christopher wrote something to the effect of telling U.S. casinos to withhold taxes on his jackpots, so he'd have a nice surprise at tax time, but that the U.S. Treasury took 18 months to refund the withholdings. (Christopher is now a naturalized U.S. citizen.)

The best advice for these kinds of tax nightmares is to hire an accountant, of course, but even that has its own pitfalls. CPAs and Enrolled Agents who understand all the ins and outs of gambling taxes are few and far between. They're becoming more common as gambling, especially sports betting, spreads, but even then, influencers and gambling pros have to prepare all the documentation and check the returns thoroughly. It's never easy. 

 

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Comments

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  • Lucky Dec-15-2025
    New Tax Law
    Going to get worse as professional gamblers try to hide the 10% of losses that they cannot write off.  Are expenses, like travel, part of losses, or a separate expense.  Food, lodging, etc?  Going to be really interesting to see how that all plays out, and who professes to fully understand how it works.  Lastly, does the W2G threshold go up to $2000 on January 1?  So far, every machine of every type is programmed to kick into handpay mode at $1200.  I think they should leave the handpay at $1200, but no W2g until $2000.  I hope all those slot attendants keep their jobs.

  • Llew Dec-15-2025
    Accountants 
    My high roller friend used to say, “my accountant hates me.”  She would come home from every casino trip with a handful of W2Gs, even when she had an overall loss. 

  • Raymond Dec-15-2025
    Lucky
    The expenses you mention may be deductible IF you are a professional gambler.  The Service, of course, may disagree and disallow your expenses, and you face a long, hard, but not impossible slog in convincing them that you are a professional.  I'm a tax accountant, and if one of my clients tried to claim that they are a professional gambler, I'd ask for logs and receipts--dates, times, locations, results, everything documented. I do that for my gambling, just to see how I'm doing overall (2025 hasn't been pretty).  As in other areas, the clients may whine, but keeping good records, tedious as it is, can save a lot of money.

  • Kevin Rough Dec-15-2025
    W2Gs and 1099s
    In addition to the gambling paperwork there would also be the influencer paperwork.  Payments from sponsorships, Youtube, etc. in addition to any of those expenses.