Tax on Winnings?

[chuck arl]

The $10k reporting figure was initiated by the feds this year under what is known as title 31. This, allegedly, keeps a check on illegal or laundering of bad money taking place in a casino. This is not an IRS issue, per se, but a way of tracking the way an individual moves money around a casino. There may be more on this somwhere on the internet under Title 31.---CWA---

[bigboy]

I think the 10K reporting requirement was in effect prior to this year. I know that cash transactions of 10K or more outside of a casino have required a report for many years now.

[7come11]

Thanks so much for all of your info.  It's more complex than I thought on all the various games. 
A whle back I hit a RF on a progressive that was just under 1200 and the attendant came over and paid me - he told me I was lucky that it was under $1200 so I didn't have to pay taxes.  I live in MO where we do have very strict gambling rules. Only state I know of with a $500 loss limit every 2 hours, and that just means if you cycle through $500 (say you put $200 in a VP machine then cash out in 10 minutes, then bu in for $300 ata table and play there another 10 minutes, you've used up $500 - win, lose or draw).
 
Another one I saw was a guy hit 4A with a kicker at a $1 denom at the airport in Vegas.  He had to do the tax filing and his plane was leaving. He was sweating over catching his flight but no way was he going to leave w/o his $2000.
 
It was mentioned that the IRS was considering changing that $1200 hit to a higher level.  Does anyone know who would be a good contact to write in support of that law. I think it would get laughed at from the MO gaming commission.
 

[MikeA]

No details on the increased amount I mentioned.  It has been talked about at least outside Government circles but I don't know if anything is in the works formally now.  I play quite a bit in Missouri myself.  Mostly at AmeriStar in KC as well as Isle of Debris...ughhh, Isle of Capri I mean.  They "almost" had that $500 loss maximum killed back in January this year.  At the last minute though, the law that would have lifted the 2-hour loss limit failed to pass.  That's going to really hurt KC casinos in Missouri when Kansas opens up a casino in that area. 

[shadowman]

I think I was remembering a change this year where NV casinos used to be exempt from reporting the $10K but now, as of July 1st, they must report them just like every other state.
 
Also, I don't see the $1200 rule changing. It really has nothing to do with the IRS. It is congress that sets the law ... the IRS implements it. So, the only way I could see it changing is via an organized letter writing campaign to representatives. Even then it would be a difficult sell. I'm sure most casinos would back it since it would reduce their paperwork, however, with computers these days it really is not a big problem for them.
 
Let's face it. Very few gamblers ever get jackpots over $2500 so if they doubled the reporting limit they would lose lots of gambling revenue. Who  tracks their wins/losses and report the wins unless they have to. 

[MikeA]

I think I was remembering a change this year where NV casinos used to be exempt from reporting the $10K but now, as of July 1st, they must report them just like every other state.
 
Also, I don't see the $1200 rule changing. It really has nothing to do with the IRS. It is congress that sets the law ... the IRS implements it. So, the only way I could see it changing is via an organized letter writing campaign to representatives. Even then it would be a difficult sell. I'm sure most casinos would back it since it would reduce their paperwork, however, with computers these days it really is not a big problem for them.
 
Let's face it. Very few gamblers ever get jackpots over $2500 so if they doubled the reporting limit they would lose lots of gambling revenue. Who  tracks their wins/losses and report the wins unless they have to. EXACTLY!

[faygo]

I think we would have to be careful about pushing for an increase in the $1200 figure.
Congress does not eliminate taxes they only come up with new ones.
As they have done with some perks of employment (i.e. vehicle use, life insurance) they have declared them as income with an inputed value.
They just might get the bright idea to declare the various comps we get from casinos as income.
This is one sleeping dog that should be left to rest, as dumb as it is.

[7come11]

I heard quite a bit of talk about that in the KC area. If Kansas comes up with some nice places, Ameristar is going to be in trouble. Isle seems to have enough trouble as it is. Is there any developments in the works in Kansas yet?
 
I'm in Saint Louis area and there's really little competition from Illinois. Casino Queen is really the only thing close and they really don't draw that well. I don't like it because I enjoy craps as well as VP and they have the worst odds (2x behind the pass line where MO is 10x, even Vegas is 3x,4x,5x).  As for their VP. very little choices. They did just remodel but haven't been there since.  None the less, I do have a couple friends who only play there for the reason of the $500 loss limit.
 
St. Louis is going to be more competition within the same market, Pinnacle is almost done with one downtown and less than a year away from one in the county area.

[MikeA]

I heard quite a bit of talk about that in the KC area. If Kansas comes up with some nice places, Ameristar is going to be in trouble. Isle seems to have enough trouble as it is. Is there any developments in the works in Kansas yet?
 
I'm in Saint Louis area and there's really little competition from Illinois. Casino Queen is really the only thing close and they really don't draw that well. I don't like it because I enjoy craps as well as VP and they have the worst odds (2x behind the pass line where MO is 10x, even Vegas is 3x,4x,5x).  As for their VP. very little choices. They did just remodel but haven't been there since.  None the less, I do have a couple friends who only play there for the reason of the $500 loss limit.
 
St. Louis is going to be more competition within the same market, Pinnacle is almost done with one downtown and less than a year away from one in the county area.There will be development starting I would think, soon.  The law in Kansas was only passed this past Spring I think.  Then, it had to go on the ballot for the counties.  Sedgwick county disapproved it (Wichita) but I am pretty sure I heard that the county that KC is in passed it.I imagine Woodlands Racetrack will be the first manifestation but I also think there will be a full Casino somewhere in that area.It all depends on how the Kansas Casinos are managed.  They have a golden opportunity if they don't get greedy and blow it.  I think the competition between Kansas and Missouri is going to be a good thing for us.  The Casinos in Missouri have really gotten bad on pay tables and the Indian Casinos in Kansas are not much better.

[cddenver]

It all depends on how the Kansas Casinos are managed.  They have a golden opportunity if they don't get greedy and blow it.  I think the competition between Kansas and Missouri is going to be a good thing for us.  The Casinos in Missouri have really gotten bad on pay tables and the Indian Casinos in Kansas are not much better.

 
MikeA, I think that may be true short term, but not long term.  We had a similar situation here in CO when they first started building the larger casinos in BH/CC.  There was some competition at first in terms of good game selections and paytables, but not anymore.  Now, when a larger casino lowers its paytables most of the others follow suit.
 
In another recent thread, someone remarked that they complained about that to a casino host or manager and were told that the casino was simply conforming to the practices of other casinos in the area.  As long as a casino doesn't lose much business, there really isn't any reason for it NOT to lower its paytables.  The practice is more the fault of players, not the casinos.