How Do Casinos Pay Out Large Sums of Money
There 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 Taxes
Again, 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.
Sell Winnings for a Lump Sum
Another factor found through research is that players can sell their winnings for a lump sum to the casino at 50% to 60%. While this may sound like an annuity payment, the winner could receive a total cash payment if they accept the rate of return. But remember, the cash payment is taxable. Moreover, the gains made are minimum and can take years to collect.
How to Receive Winnings in Your State or Country Currency
Here is another factor to consider - currency. If you are playing online, the best thing to do is read how the withdrawals are paid out. Indeed, while most casinos online are located in different parts of the world, and you live in the US, you want to be sure that your winnings are in USD.