Whether you are an avid online casino gamer or not, it still behooves you to know how, exactly, you can expect to get your money if you just so happen to win huge amounts of cash. You are playing, after all, so you shouldn’t discount this possibility; in fact, you should count on it - for who knows on whom the god of luck (Cai Hong in Chinese mythology) will smile upon on any given day? Besides that, it is a topic of intrigue that deserves to be fleshed out, given the reality that casinos do not fall under general legislation.
The first thing that you have to worry about if you win a large sum of casino cash, is whether or not to take a lump sum payments or have your winnings and meted out over a period of time – which is basically known as a structured settlements. The latter are pretty much similar to those annuity payment commercials that used to run nonstop a few years back when people still watched television. No matter which one you choose, obviously you will be tasked with paying taxes as well as losing a bit of money to inflation since practically all world governments devalue their currency by printing money.
The way that online casinos payout money isn’t so different from how state lotteries payout. The option to receive all of your money at once is available; however, you stand to lose a big chunk of it to fees and taxes are like.. The usual way is to enact a structured settlement option, which pays outs in identical amount of money every. Over a long span of time – but of course this depends on exactly how much you one.
For example, if you happened to beat a progressive jackpot containing slots such as Megasaur Slots, then you could be in the running for millions of dollars, and it could take years to receive the final payment. In that way, your winnings are treated as passive income. It’s important to keep in mind that many casinos do not offer the lump sum payments, because they are limited in the amount of money that they can afford to give out to a single player at a single point in time.
Thus, for the overwhelming majority of casinos, if you wish to receive a single large payment then you need an annuity payment company equivalent to buy your winnings from you for a fee, from which you get to pocket the bulk of your casino cash. This way, you can use the money for any large purchases or debts right away in your off-line life.
Obviously, one of the first things that you will need to do when you win a considerable sum of cash at an online casino is to settle your identification and any tax forms that are relevant in your jurisdiction to the House. Then, if you’re tally is equal to $25,000 or less, then you can request a check or even cash by courier. Of course, the latter is only possible when you win in a land-based casino since mailing money by Federal Express is a horrible idea!
Even in a land-based casino, winnings that total greater than $25,000 can be rather difficult to funnel to the winner in pure cash – but often times, where there’s a will, there’s a way. After all, a casino’s goal is to get any major winners to keep on playing. For obvious reasons, this gives the casino a chance to not only win their money back, but to take you for unload more. Just consider the psychological advantage of having one a bunch of moolah, only to lose most of its; most people do not have the psychological fortitude to know when to stop playing in such a scenario.
Regardless of which one you want, be sure to adhere to the casino guidelines as well as outline that’s usually located in the Services subsection of the website. Basically, there’s a time frame during which you must decide whether you want a lump sum – if available – or the structured settlement option. In most casinos this period is 90 days or three months. If you do not declare during this time period, then a selection will be made for you and the fees will be withdrawn that are commensurate with that particular option.
In this subsection, you learn why casino gaming is such a big thing that is slowly being opened up to the states. And that thing is tax; not only do you owe tax on the federal level, you often also owe it at the state level. And as if that wasn’t enough, the IRS pacifically taxes gambling to make for a total of three separate taxes on your casino inspired good fortune. Make sure you understand the rules in your jurisdiction for reporting this as income if it meets a certain level – usually, if you win $5000 a more, then it is treated as income and can actually place you into a higher tax bracket so that Uncle Sam ends up taking more than his pound of flesh. Since so many online casinos are located in offshore locations, the tax rules that apply are only the ones which are applicable in your country of residence or state.
In order to delve in depth into some of the ways that a casino can pay out your winnings, we have to take an example. In fact, there is a mostly universal pay scale for certain games that you can find at most sports books and gaming halls. For example, if you win at least $600 for a horse race, then you must report this on your impending tax return – but only if the $600 is 300x your wager. If you’ve made a bit of a killing in the Specialty Game known as Keno or Super Keno (or any strange, uncommon variations that have the primary name ‘Keno’ contained within), then you have to report $1500 or more on your tax return. Similarly for the Specialty Game Bingo, the minimum amounts allowed to before you have to report it is $1200. Video Slots are some of the most popular casino games around, and if you win at least $1200 and one, then you are liable for reporting it on your next tax return. Lastly, for the major table game poker, $5000 or more – whether you win it in a tournament, or a Live Dealer run – is the lowest amount above which you have to report.
You also have to deal with the casino holding onto a quarter of your winnings and the taxes demanded by your state before releasing it to you. That means your bank account will fill up with your casino winnings sends that 25% escrow take. You should not expect to get most of this money back – but if the state didn’t take a chunk of it, then casinos would not exist.
Basically, all this means is that you know how much money you’re losing with either payout option. Just like the lottery, if you choose the lump sum settlement if it’s available, then you stand to lose a huge chunk of your winnings. In fact, you may end up only getting between 50 and 60% of what you appear to win on whatever game was especially lucky for you. If there is a benefit, is that you only have to pay taxes a single time on this lump sum payment – but obviously since it takes so much out of it as prescribed by the prime rate for that year, this does not appear to be much of a win.
On the other hand, if the casino pays out your large sum of money in the form of a structured settlement, then you don’t lose nearly as much money up front – but you do have to pay taxes on it every time you get a payment. Depending on how long-term this is, you can still be receiving casino income well into your twilight years with the 20 to 30 year option for especially big wins. Since so many people losing lottery winnings or blow the casino winnings on inadvisable purchases, the structured settlement can afford you an excellent way to manage your money for free. Each option has its benefits.