I don't know if anyone else is as unfortunate, but it feels so good to hit a W-2G worthy jackpot and ending up going home with nothing. I want to blow off some steam with my story and maybe you guys can comfort me with some of your stories.

On my first trip to Atlantic City, I stayed at Caesars for 10 days. My whole trip including flight from California, limo, and RFB was comped. I felt like I started out as a winner! Since I LOVE playing $5 Wheel of Fortune machines, I was so excited to see that they had $25 and $100 wheel of fortune machine at all the Harrah's properties. Within the first hour, I lost $3000 on the $25 WoF at harrah's and I did not even get ONE SPIN! I continued to lose another $2000 on various $5 Top dollar, Mystical Mermaid, and double triple diamond machines. I thought to myself, I should have invested that $5k on the $100WoF instead! I headed back to Caesars and sat down at one of the two $100 WoF machines they had. On my very first pull, I heard a "DING" which means I got a SPIN. It ended up being worth $3500. I continued to play that machine for the next 10 days and hit numerous spins ranging from $2000 to $5000. Also hitting 3 Any Sevens for $5000. On my last day, I had W-2G's adding up to $85000 with only $5000 in Net winnings. I decided I would give it one last try and try to hit something before my flight home. I took the 50 ben franks and kissed them goodbye on that machine. 50 pulls and not even one spin! I ended up going home with $85000 in W-2G's and NO winnings to show for it! It hurt, but I have to admit I had a lot of fun and I guess that is all that matters!

Thanks for listening!

Hi Top Dollar:

Obviously you have a few more "top dollars" than me. Since I am from Canada (where you do not pay tax on winnings) ... I would like to understand the US system.

I understand you have to pay tax on your $85K win. However, using a player's card, I thought the casino could supply you with a listing of how much you spent on the machine -- and this could be used against your $85K win. Is this an incorrect assessment of how the system works? I don't understand how they can tax you for winnings, but not give you a "tax break" on the money used to get the win.

/\/\/\/\ the Shamus /\/\/\/\

The Shamus,

To better understand the US system, just keep in my that we get TAXED on everything! hehe...Regarding gambling winnings, you are issued a W-2G form for "certain gambling winnings" $1200 or more on slots. That means everytime you hit something $1200 or more, a hand-pay is required and you have to sign the form and it is reported to the IRS by the casino. At the end of the year I am required to report those winnings as income. Luckily, I am able to offset those winnings with losses as an itemized deduction on my tax forms. Yes, using a player's card does help but it is not an accepted form of proof for the IRS if you get audited. In order to claim the loss, I have to keep a very detailed log of every gaming trip and I must note the name of the casino, time, date, machine number, and amount loss for EVERY machine I play. Other supplemental evidence is helpful like cashed checks, atm withdrawal slips, markers, etc...Also, I am only able to claim a loss up the amount I have won. Last year, my total gaming wins totalled $189,000, and I claimed a loss of $189,000, although I lost way more than that! Therefore I did not have to pay any taxes on winnings. It's a lengthy process, but I guess I rather have hit the jackpots and complete these forms then not right?

I have some questions for you Shamus, I was told that no matter where I gamble I must report winnings to the IRS even if it is out of the country. I am planning a trip to Casino Windsor next year and I am planning on hitting a lot of jackpots (confidence is the name of the game!), how would the process work since you are not required to pay taxes. Am I issued any forms for jackpots, what about crossing the US border? There is a $10K restriction right?

Have you considered playing less than max bet? The problem with Higher Denom machines, is that almost any hit will be a taxable. Unfortunately a very antiquated law $ 1,199.00 is not a realistic threshold. Good luck.

techjuan

Like yourself, I also like the bigger machines and like to avoid "phantom income" tax issues. One nice thing about playing the video gaming machines in New York (i.e $25.00 Double Diamond near NYC) is that in New York state only wins that are more than 300 times your bet are reportable. So, with a $50 max bet on a 2 credit $25.00 machine if you hit Red 7's with one double symbol which pays $8000 there are NO TAX CONSEQENCES. They don't report it, nothing to sign...nothing at all. You just get a white paper, go to the cashier and get the money. It is also helpful on the $5 machines which I play more of (i.e Triple Double Dollars, Triple Lucky) where a $3600 hit on a $15 bet is tax free

There are really no comps to speak of, but for a 10 day trip perhaps spend some time in Manhattan where there are lots of things to do besides the machines

i know what you mean, especially at the end of year when you do your taxes and hope you don't get audited for declaring all the losses. the way i look at it, i dont mind losing back money i won because i rather being playing with their money than mine, so as long as i return with the money i went with it's not so bad.

Hi Top Dollar:

I must admit -- I not had a jackpot larger than $3,000. However ... I have never signed a form ... and I have always been paid in cash. There is likely a point where they issue a cashier's check ... but I'm not sure about the threshold.

I think there is a limit on the funds going over the border ... however, you should be able to deposit funds into your US bank account or mail a check to yourself.

In Ontario, Canada, the government (Ontario Lottery Gaming Corporation) runs all of the casinos in the Province. Lottery winnings are also non-taxable.

Technically ... as a US-resident, I guess you are expected to claim big wins in your income -- but I wonder if the IRS will late you claim Canadian losses? I have my doubts.

I think tracking your $$ meticulously is not a bad idea ... you can see the machines are are ahead of over the long run -- and which ones drain you the most.

/\/\/\/\ the Shamus /\/\/\/\

PS - Sorry I didn't get back to you on a timely basis.

This has been really educational for me reading your experiences Top Dollar. My biggest jackpot ever was on a nickel dd prog of $727.34 so I never had to fill out a W-2G form (at first I thought that meant "Way 2 Go!" lol) my mother has though. I didn't know you could claim your losses by itemized deduction, I will be letting her know but I imagine it's too late to do so she has not kept any records of her gaming this year but next year at least. I am also curious about what happens with international winnings where no tax is set, how it affects us...I would think it shouldn't matter, but Uncle Sam might beg to differ, eh?