GamingTips

Gambling winnings are a form of income, and as such are taxable.  So does the average gambler need to be concerned?

Not necessarily.

Casinos, sports books, gaming bars, and tracks are required to provide and receive the appropriate paperwork on taxable wins and losses before paying out large jackpots.  This form is called a W2-G, and is required on lotto and race betting (horse or dog) where the win is at least $600, and at least 300 times the original wager.  The w2-G is also required for payouts of at least $1200 on bingo and slots, and at least $1500 on table games.

Are these the only taxable forms of gambling income?  No.  According to tax law, all gambling income is taxable.  However, casinos do not have to get W2-Gs on other forms or amounts of gaming payouts.

Once you have been taxed on gaming income, however, all wins and losses are taxable or deductible.  Winnings include all winnings (including comps), regardless of if they required a W2.  Losses can only be deducted up to the amount of the winnings, excluding comps, and cannot be carried forward or backward.

In the case of an audit, gamblers must have documentation, including a log of all wins and losses; receipts and bet tickets; and documentation of any ATM/bank/credit card transactions related to their wins and losses.

Anyone filing as a “professional gambler” will report as self employed.

Additionally, casinos are required to report any cash transactions over $10,000 to the IRS, and may report any transaction over $2,000 if they believe it is suspicious.  This applies not only to gaming areas, but also to hotel, retail and food and beverage outlets within gaming-licensed establishments.

In short, if you win a jackpot, start tracking all of your gambling for the year.  Once you fill out a W2-G, the easiest way to offset the tax hit will be to deduct your losses.  And the easiest way to get audited will be to deduct all losses, and only those wins for which a W2-G is required.  Also, remember that technically, all gaming wins are taxable.  So even if you only play poker or table games (and thus will not receive a W2-G even on large wins), or if you never hit the jackpot, you should consider reporting your gaming income, especially if it is positive over the course of the year.

One easy way to track gambling income/loss for tax purposes is to sign up for players clubs.  Most slot clubs can pull your win and loss data from their database and provide an annual statement for you.

Just as a final disclaimer, this is intended as a brief overview of tax laws as they relate to gambling.  This is not tax advice, and I am neither a CPA or a tax attorney.  In fact, if you have questions about your particular situation with taxes, you should consult a tax professional.

The Even Bettor Coverall is  a bonus game played at some bingo halls.  In particular, Coast and Boyd Gaming casinos play this as their 8th game.  Also, the multi-property Jumbo Bingo which is Game 1 at Station properties is an Even Bettor Coverall game.

In this game, players begin with all odd numbers marked on their cards.  Only even numbers are called by the callers.  This is a countdown coverall, where covering all numbers within a certain number of balls pays a progressive jackpot.  It is important to note, however, that the game starts with 37 numbers already “called,” so the first ball out is actually the 38th number.

The super coverall, or countdown, is a popular bonus game.  This game is usually purchased in a 3-on strip.  It is in play at the same time as the card for the coverall.

The main attraction with this bonus game is that it has a count down featuring one or more bonuses (often $10,000), if the coverall is hit within a certain number of balls.

The other benefit, often overlooked, is that the bonus strip gives the player three extra cards for not only the coverall, but also any other games played on this card.  This usually includes single and double hardway bingo, plus the coverall.  The strip pays as a blue card (other than the jackpots).  While three blue cards may not be much, it really is quite a steal at just $1.

So, after reading the last two posts, people are probably wondering what the difference is between a Quinella and a two horse Exacta Box.

Well, first, remember that you can box several horses.  A Quinella is limited to two horses.

Second, they are different pools of money, which means it is possible that they will pay differently.

Finally, the payouts and cost of the bet are different.

Remember that when you bet an Exacta Box, you are actually making two bets.  So, a $2 Exacta Box with two horses will actually cost $4 to place.  The payout, however, is on the $2.  The Quinella, on the other hand, is a single bet, and therefor only costs $2.