How Do Casinos Pay Out Large Sums of MoneyThere are many ways winners receive large sums of money at casinos. The consensus is that if players win $25,000 or less, they can choose cash or check. However, it all depends upon the location of the casino. Players would have to check their State regulations on casino winnings and taxes. Did You Know: Depending upon the game played, the casino would pay a lump sum or payout the money through an annuity with installments. Research also reveals that specific slot machines have stamped information about cash payouts.
I Want My Money Now!A particular TV ad about a company will take a portion of the annuity and give you a lump sum. This TV ad is most annoying as the people in it are all opera singers consistently saying, "I need cash now."
The IRS TaxesAgain, depending upon the game, players who win significant amounts of money will be given the W2-G form from the casino. Therefore, whatever the winnings are, they have to be reported on the next tax return.
How Much Does a Player Have to Report?
- It depends on how much they won. Here are some examples:
- $600 or more in gambling winnings
- Winning $1,200 or more from a slot machine or bingo game
- Winning $1,500 or more in keno winnings
- Winning $5,000 or more in a poker tournament
- Like Lotto, Mega, or any other number game, if a win occurs or exceeds the above amounts, the casino will take 25% and dole out the rest to the player.