I've seen various posts on the board concerning hand pays that range from $250 and up. I always thought a hand pay was anything over a specific $ amount that the machine could not issue, normally exceeding $1200.00.

I know that the amount may vary by casino but can someone chime in here and explain what truly consitutes a hand pay - THANKS

I believe anything over $1200 is a handpay because it is a taxable hit. But I have also seen some machines that will handpay at lower amounts because something is malfunctioning on it. I was playing a machine and tried to cash out, and it kept making the cash out noise for about a minute, then locked up and said hand pay, and it was for only $10. After they came by they then shut the machine down.

I have had a hand pay of $400.00 once while playing a .25 Haywire slot once in AC and recently a $1,100.00 playing a $1.00 Quick Hit in Pa. I think it all varys on the casino and the game, which you are playing. In Pa most of the hand pays I have see are $1,000.00 and up.

Paman

In Indiana, its $1200 and up. Plus if there is a progressive $500 + its also a hand pay because they have to verify it, and reset the machine.

Here in Detroit 1200 is a hand pay unless the win is a jackpot of the machine, then no matter if it is below, due to a small bet ,it is a hand pay and machine reset.

Great - Thanks everyone for your responses, I understand the hand pay better now.

I'm still scratching my head wondering why they gave me a w-2 for a $750 win (actually had 2 of them a month apart and got one for that one as well!). I did have to pay taxes on it too... so that $1200 figure isn't necessarily the case for w-2s. ugh!

When playing at Harrahs Cherokee they have machines that are Raffle Reels. This is how they get out of the game of skill rule that they have. You are entered in raffles if you play these machines. They are the same video machines you see at other casinos, but on the Raffle Reel Machines if you hit for anything over $600 in is a taxable pay. On all of the skill machines it is still $1200.

Before the days of TITO implementation, the slot coin hoppers were only able to hold so many coins, so the casinos were able to set an internal switch of when a hand pay would be awarded. For example, a 2500 coin hit on a quarter machine would award a hand pay of $625.00. No tax form, but a hand pay none the less.
DAinPA

Looks like table games are totally different. You would think the government ruling would be the same for any kind of gambling, but it certainly is not.

One example: Playing blackjack, lady next to me is betting a buck on the bonus side bet "Lucky Ladies". She gets really lucky, with two queens of hearts, and the dealer has blackjack. It's the top award, and pays 1000 to 1. The casino made a big fuss out of it, asked for her ID and also the actual SSN card. She had to drive back home to get it (luckily she was living close by). She got the tax forms and everything, and will be paying tax on that $1K win.

Next example: Playing Let It Ride, a lady hits 4 of a kind, paying 50 to 1. Her bet is $10 per each three spots, and since she let them all ride, she wins $1500. Including her bonus bet which pays 100 to 1 for her $1, her total win is $1600. She gets 16 black chips, and the game goes on like nothing happend (except a big smile on the lady's face). No ID, no W2, no tax!

I know this forum is about slot machines, but wanted to mention some of my observations on the tax scene. I think there should be better explained and applied standards out there, as I've been hearing/observing a lot of different applications on who gets taxed and who doesn't.