Wednesday, December 14, 2011

Taxes and Craps ...

Unless you are a "professional" gambler, there are not many tax considerations on craps unless you bet on the rare but growing proposition bets that pay 300 to 1 odds or better.  For instance the Fire Bet that can pay as much as 1,000 to 1 and the Replay Bet can pay 500 to 1 and 1,000 to 1.  If you win these higher payoffs (of at least $600.00) on these bets or any craps bet that pays at least 300 to 1, you will receive a W-2G for IRS reporting in the United States.

If you win more than $5,000.00, there will also be a 25% withholding of your winnings that will be deposited with the IRS on your behalf.

See IRS Website Link for more details on taxes and gambling.

For example, recently a good buddy of ours made 6 points on the Fire Bet at Paris Casino in Las Vegas.  The bet pays 1,000 to 1 for 6 different points made.  He bet $10.00, so he was paid a net of $7,500.00 after $2,500.00 was withheld for the IRS.  Another player at the same table bet $5.00 and was paid $4,995.00.   I am not saying Paris was correct in the payout, but that is what they did, maybe in order to avoid any possible IRS withholding problems.

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