Are Table Games Taxable? | Las Vegas Advisor

So when you win $1,200 or more on a slot machine, you fill out IRS paperwork. But do you file the same paperwork when you win, say, $1,500 on a single hand of blackjack? Surely all table games aren’t exempt from the IRS?

As we all know, the Internal Revenue Service requires the casinos to report wins of $1,200 or more on slot and video poker machines. For horse and dog racing, jai alai, state lotteries, and some other kinds of wagering, the W-2G form must be issued for any winnings that are at least 300 times the amount of the bet.

So to answer the first question, if you're playing blackjack, craps, roulette, Pai Gow Poker, or any other table game, you'll never be issued a W-2G for any size of a win. You simply can't win 300 times your wager at any table game, besides those with a big side-bet or progressive jackpot, for which you will receive a W-2G.

Now, does that mean that table games are exempt from the IRS? Hardly.

Nothing is exempt from the IRS, at least in terms of winnings at gambling. And maybe more. As Jean Scott's attorney sister says, "I had a tax professor who taught us that if you find a penny on the sidewalk, it's taxable."

As we reiterate in almost every question we answer about taxes, you, the gambler, are on the hook to pay taxes on all of your winnings, whether or not you receive a W-2G, 1099, or any other IRS form. Not only that, you have to keep an accurate diary, with session records entered in real time (in other words, not reconstructed at the end of the year if the IRS comes calling) that you can show the government in the event you're questioned about your wins and losses.

And, as always, we recommend Jean Scott's book Tax Help for Gamblers, which answers all these questions in great detail.

No part of this answer may be reproduced or utilized in any form or by any means, electronic or mechanical, without the written permission of the publisher.

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jstewa22 Jun-24-2024

tell us more...

So, if you're playing craps or blackjack and your net win for the session is several thousand dollars, does the casino issue any sort of paperwork?  Or is just the honor system?

Christopher Sterbenz Jun-24-2024

jstewa22

The honor system. The house doesn't do any tax paperwork for table games.

jstewa22 Jun-24-2024

Honor system

Thanks, that's what I thought. The IRS must love that. I guess there would be a currency transaction report if you cashed out over $10K, right?

O2bnVegas Jun-24-2024

progressive table  games maybe

Some table games have a progressive 'board' with a Royal Flush (or other unlikely-to-be-hit hand) jackpot that will be taxable if the player put a chip on the bonus spot.  I've heard the stories, but never witnessed one. 

Candy

Lucky Jun-24-2024

Table game W2G

I was playing "I Love Suits" at the Horseshoe.  I bet $10 on one of the bets.  I hit 7 hearts (only 3 cards were in a straight).  300 to one, $3,000.  They gave me a W2G. Coincidently, the shuffle machine, when dealing out the cards, malfunctioned.  It gave out 6 hands, and the 7th to the dealer had all 10 remaining cards.  I thought it was going to void my 7 card flush.  Since what the dealer had made no difference to the $3000 win, they paid it, and paid everyone that had a winning hand.  They did a test run with the shuffler, and it made the same error.  They replace the machine (it took all of 3 minutes) and all went back to normal.  Few hands later, I hit 6 hearts for $1K.  No W2G.

[email protected] Jun-24-2024

CYR

Buying in OR cashing out $10k or more requires a CTR. But that doesn’t necessarily go to the IRS. It’s just on file in case your ever suspected of money laundering.

Dorothy Yasutake Jun-24-2024

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I've recently read numerous articles indicating that Las Vegas is being besieged by mosquitos carrying the West Nile Virus, the St. Louis Virus and others. Some have even gone so far as to advise cancelling any future trips to Las Vegas. Was looking forward to a trip there in August. Now I'm thinking of cancelling. How do you see the situation? Is it as dire as reported?

King of the Bovines Jun-24-2024

It all depends...

I work at a sportsbook, we get these questions all the time.

As stated above, when a machine wins $1200, it will stop, and they'll come over with a W-2g.

If they do not have your SSN on file, they will have your fill out a W-9.  Don't try to be cute and give them a fake SSN.  It's technically a crime, but the casino WILL check to make sure that it is yours.  And if it fails that check, you don't get the money until it does


(There's a different form if you're a foreign visitor, but you need your passport to fill that out.

If you cash in or cash out over $10k, or if it looks likely that you might, they will require a W-9 to be on file.  And once they ask, you dont get your money until you do.

On table games and sports / horse betting, you can win as much as you went without getting a W-2G.  Bet $55k on Edmonton to win $110k if they win?  Or bet $50
5k on the Pass line to win $110k

Here's your $110k as long as they have a W-9 on file.  (The $10k rule.)

King of the Bovines Jun-24-2024

But there's more!

At either table games or the race / sports book, you will get a W-2G if the odds paid is greater than 299-1.

(I will leave it as an exercise to the reader on why we cap our parlay payouts at 299-1 where I work.)

So that 9 leg $10 parlay that pays $3250ish will generate a W-2g, but an 8 leg $10 parlay will play $1700ish, with no tax paperwork.

Same on table games - a $5 Fortune Pai Gow that hits five aces will pay $2000 and get a W-2G.

The $2000 bet on the hand will get you $1900 profit (5% commission), and no paperwork.

What one needs to do with that paperwork is an issue between you and your tax preparer / accountant...

Question of the Day - 24 June 2024

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