How Do Casinos Pay Out Large Sums Money
As with any game played at an online or land-based casino, depending on the game played, the casino would pay a lump sum or payout the money through installments, like an annuity.
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.
Winning Players Have to Report Payouts
- The player has to report the payout for $600 or more in winnings. So too, if a player wins the following payouts, the IRS has to be informed:
- 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
- If a win exceeds the above amounts, the casino will take 25% and give the remainder to the player.
A Lump Sum Sale
Players can sell their winnings for a lump sum to the casino at 50% to 60% of the total. The winner could receive a total cash payment if they accept the rate of return. Note that the cash payment is taxable.
Receiving Winnings in Your State or Country Currency
A player should read how the withdrawals payout by playing online to determine the currency. While most casinos online are licensed globally, and players live in the US, ensure that the winnings are in USD currency.