Taxes on Your Gambling Winnings – You Owe Uncle Sam a Piece No Matter How Much You Won

When you’re gambling at a casino, you may win a few bucks here and there and leave with more dollars than you brought with you. It may be as little as $20, or as much as $1,000. When cashing out you were never presented you with a form to declare your winnings to the IRS. If you think you’re home free, think again. As a U.S. citizen, you owe Uncle Sam a piece of the action regardless of the amount. Many players think that just because they were not given a tax form there’re home free. Not so.

So, what does get reported to the IRS? Larger amounts that are won at gambling establishments such as casinos, lottery retailers, horse race tracks and off-track betting parlors. They will issue a form W-2G, one copy to you and one to the IRS. Here are some details:

Machine Games

$1,200 or more won at a slot machine, video poker, video keno, video blackjack, etc. This only applies to a single jackpot payout amount. Accumulated credits are credit meter wins and do not count.

$1,200 or more won at a live bingo game will also trigger a W-2G, and $1,500 or more at a live keno game (minus your wager amounts).

The casino will not withhold any gambling taxes from awards in the $1,200 to $1,500 range provided you present a valid photo ID and social security number. If you do not provide this information, 28% will be withheld.

Live Table Games

Winnings from live table games are not reportable on a W-2G, except if there is a very large prize amount offered for a small wager, such as a dollar bet for a shot at a progressive table jackpot, where the winning odds are over 300/1 and the win is more than $600. For example, Caribbean Stud offers a huge progressive jackpot for wagering only $1, if you’re lucky enough to hit a Royal Flush.

If you win $600 or more in any other wagering game, such as horse, dog racing or sports betting, and the amount is at least 300 times your bet minus your wager amount, the establishment will gift you with a W-2G. If your winnings exceed $5,000 and the amount is more than 300 times your bet, 25% will be withheld. The same withholding percentage also applies to any cash prize of $5,000 or more in poker or other card tournaments minus the buy-in amount.

Winnings on state lottery games such as lotto, numbers, scratch-offs, etc. can be collected at your local retailer up to $600. Any more and you’ll have to visit the main lottery office in your community, where a W-2G also awaits you. This information is from the New York lottery. Other states may have different rules.

Winnings on Daily Fantasy Sports (DFS) contests at this time are considered games of skill. DFS sites will issue a 1099-MISC, not a W-2G for winnings of $600 or more.

Video Lottery Terminals (VLT)

$600 or more in winnings from any class II ​Video Lottery Terminal game will also invite a W-2G. This includes any winnings on machines at jurisdictions that are operated by a state lottery. For example, New York State has nine race tracks with VLT’s that are pseudo slot and video poker machines.

Deductions

The good news in all of this is that gambling losses are tax deductible but only up to the amount of your winnings, and only if you itemize deductions on your tax return.

The IRS wants to make sure that you indeed lost what you claim you lost, so a record of all your losses is required. Win- loss statements are available from most major casinos at the end of the year, provided you used your player’s club card when playing machines. Save those losing scratch-off tickets, Lotto, Powerball, and Mega-Millions tickets, daily numbers, Quick Draw, OTB, etc.

For losses on Daily Fantasy Sports contests, the IRS position at this time is unclear. Because of the skill factor, your winnings are in the hobby category. Therefore, any losses would not be deductible, although this situation could change at any time.

You don’t have to record the tickets on your tax statement, but they may be necessary if you are audited. All the IRS wants to know is the type of wager, the amount of the bet and the date of the transaction.

Always play it safe and check with your tax preparer for your personal needs.

A Lesson on the Golf Hustle, a Gambling Game – Sticks

A little known fact outside of the golfing world is that more than $10 Billion a year is gambled on golf right here in the United States alone. The only thing bigger is the Super Bowl and the Final Four combined!

This is what my golf lessons are all about – to teach you the different gambling games, the science of betting, strategy, hustling, attitude and more.

Hustling at golf is a lot easier than you think. Learning the games involved in any golf hustle or competition is well worth the few minutes it takes to go over the rules. Having the rules down before hand is key because if you are the expert and explainer of the rules, you’ll start the round with an edge.

This is what hustling golf is all about – betting with an edge. For fun and money, people who play golf like to make things interesting either by wagering money, a soft drink at the end of the round or just plain bragging rights and “pick-up sticks” or “sticks” is a great and fun game to play the next time you get out there on the course.

Sticks is a lot of fun and very entertaining. The game is played match play and for each hole a player loses, he takes one club in the winner’s bag out of play.

The loser of each hole also can reclaim a club taken out of his/her bag on previous holes. Decide beforehand if putters are in play or not. Usually, players agree to keep the putters out of it and leave them alone as they are integral to the game but including them does add to the fun.

Personally, putting with a wedge or a 2-Iron can be easy if you practice for just a few minutes before your next round so I suggest including the putter after just a few drills with your putting.

In fact, after breaking their putters during a round, Fuzzy Zoeller used his wedge and Ben Crenshaw used his 2-Iron on separate occasions. Therefore, if you practice with a 2-Iron or wedge and your opponent does not, you’ll be at a major advantage if you include the putter – again betting with an edge.

Time for a little golf hustle strategy – DO NOT immediately grab the driver from your opponent’s bag as most people do. It is the worst club to take away, period. Most players would actually do better without their driver, using their 3-Wood or 2-Iron to tee off with, leaving them 220 yards in the middle of the fairway instead of 260 yards deep into the rough.

If you know your opponent’s weaknesses before hand, you’ll be much better prepared to choose as you’ve already learned the lessons as to what to choose first.

The best club to take first is the sand wedge, hands down. A lot of players rely on the sand wedge for nearly every shot within 100 yards. It is nearly impossible to get up from any greenside bunkers without that club.

However, look to see if the player carries a lob wedge. If they do, grab that first and then the sand wedge. Clearly, if a player carries a lobber, they rely on that and that’s what The Golf Hustler is all about – betting with an edge.

Although a silly golf game for sure, this is an excellent game to start wagering for fun or profit for beginners. You’ll be forced to create shots, punching a 4-Iron to make it act like a 6-Iron or hitting a running hook to hit a 6-Iron as far as a 4-Iron, etc.

Either way, if you’re prepared, you’ll be in position to win a lot of money (or bragging rights).

Also, the opportunity for “proposition bets” is abundant. If you’ve won several holes in a row, make the bet that you can hit it closer to the pin with your 5-Iron from 60 yards out than your opponent who still has his lob wedge or anyplace else where you think you have an edge, or any similar shot – use your imagination!

As always, good luck, good hustling.

Freddy Kaboot

Bring Live Casino Gaming Home with Internet Gambling

If, for you, the worst part about going to online casinos is leaving then your sorrows are over. With online casinos you can bring the excitement of live casinos home with you! Online casino software emulates real casino games so well that you may even forget that you are in your own home and not in Las Vegas! Online casinos have everything that live casinos have to offer, so the next time that the urge strikes you to head to Caesar’s Palace all you have to do is turn on your computer.

An online casino is not so different from a live casino. When you play online you can choose from all of your favorite gambling games. Online casinos offer virtually any casino game you can think of including, but not limited to, slot machines, video poker, regular poker, blackjack, baccarat, keno, roulette, craps and even bingo! The games are played by the same rules as in live casinos and online gambling software is even designed to look just like real casino games! Some Internet casino websites even offer software in which you have a character that must walk around a three-dimensional casino space with other players and choose your games.

It is the belief of many gambling enthusiasts that online casino games are not as exciting as real live casinos because when you play online you are sitting by yourself at your computer and there is no interaction with other players. This is not the case at all! In fact, most Internet casino sites encourage interaction between players, especially in multiplayer games like blackjack, craps and poker.

There are also tournaments in which players compete against each other in all forms of casino games, including slot machines. Online casino tournaments can be a fantastic social experience! When you play in online casino tournaments you pay an entry fee. For this fee you receive a predetermined amount of chips. Each player receives the same number of chips and has a specific amount of time in which they may play slots machines or poker or roulette or whichever game is specified by the tournament. At the end of the allotted time the player who has the most chips is the winner. The prize pot is made up of player entry fees and can be quite large depending on the number of players. Additionally, interaction is encouraged during the tournament through chat software and can make online tournaments a fantastic social experience.

As you can see, gambling online can be just as fun and exciting as playing in live casinos. The best part is you don’t have to book a plane ticket or even leave the comfort of your own home! If you have a computer and Internet access you can participate in Internet gambling twenty-four hours a day, seven days a week! All you have to do is choose a casino online and start playing and you’ll never be sad about leaving the casino again!

Gambling Jargon: Know the Lingo to Do the Deeds! Here’s the Jargon for Popular Table Games

Don’t be left out when playing games in the casino! Learn gambling vocabulary as you learn the games. It’s important to understand this so you won’t feel like a novice when playing table games.To get you started, here is the meaning of some of the terminology used in popular gambling games:

BLACKJACK

Basic Strategy – Plays you should make to maximize your advantage

Burn Cards – Removed cards after the shuffle

Bust/Break – Exceeding a hand total of 21

Card Counting – Memorizing played cards with an assigned value

Color Up – Cashing in your chips

Double Down – To double your initial bet following the initial 2 card deal

Even Money – Cashing in your bet for a 1/1 payout when you have a blackjack against a dealer ace

Face Cards – Jacks, Queens, Kings (AKA picture cards)

First Base – First seat to the dealer’s left

Hit/Draw – Calling for another card to add to your hand

Hole Card – The dealer’s face down card

Insurance – A side bet for the player when the dealer has an ace showing

Pat Hand – A had worth at least 17 points

Push/Tie – Player and dealer with the same hand total

Shoe – A device used for holding and dispensing cards

Soft Hand- A hand with an ace counted as 11 or 1

Stiff Hand – A hand with little chance of winning if hit

Surrender – Giving u your hand to lose one half of your bet

Third base – Last seat to the dealer’s right

Up Card – Dealer’s first dealt card face up

CRAPS

Any Craps – A dice total of 2, 3, or 12

Big Red – a bet in the Any Seven box

Boxcars – When the dice total 12

Capped Dice – Crooked dice

Cold Table – When most shooters are not winning

Come Bet – A bet made after the point is established

Come Out Roll – First roll of the dice in a round

Don’t Come Bet – A bet made after the point is established (Outcome is opposite of the Come Bet)

Don’t Pass Bet – Betting against the shooter before the Come Out Roll

Free Odds – An additional bet behind the Pass Line Bet taken at true odds

George – A good tipper

Hardway – A 4,6,8,10 thrown as pairs

Place Bet- Betting that a place number (4-6, 8-10) will be thrown before a 7

Point Number – One of the numbers 4-6, 8-10 made on the come out roll

Press A Bet – To double your bet amount

Proposition Bets – (AKA Prop Bets) one roll and Hardway bets

Right Bettor – Betting that the shooter will win

Seven Out – When a 7 is rolled before the point number

Shooter – Player currently rolling the dice

Snake Eyes – When the dice total 2

Stiff – A poor tipper

Toke – A tip given to the dealer

Vigorish – ( AKA Vig) commission taken by the house

Wrong Bettor – Betting that the shooter will lose

Yo – The number 11 (AKA Yo-Leven)

POKER (TEXAS HOLD’EM STYLE)

Aces Up – A pair of Aces with another pair

All In – Betting all your remaining chips

Ante – The opening bet before dealing begins

Belly Buster – An inside straight draw

Big Slick – An Ace and a King

Blinds – 2 forced bets before any cards are dealt (small blind & big blind)

Boat – Slang for a Full House

Broadway – The highest straight possible with mixed suits, 10, J, Q, K, A

Button – A disk placed in front of a player acting as the dealer

Bullets – A pair of Aces

Call – To match the current bet

Check – To defer making a bet until another player does

Cowboys – Slang for a pair of Kings

Dead Hand – A hand with no chance of winning

Donkey/Fish – A bad player

Drawing Dead – A hand that will lose even if it improves

Flop – The first 3 community cards

Flush – 5 cards of the same suit

Full House – (AKA Boat ) 3 of one kind and 2 of another

Kicker – The highest unpaired card in a hand

Ladies – Slang for a pair of Queens

Muck – Face down discarded hands

Nuts – The highest possible hand

Overcard – A card that is higher than another

Quads- 4 of a kind

Rag(s) – Cards that add no value to your hand

Rainbow – Cards with different suits

River – The 5th and final community card

Rounder – One who makes a living at playing cards

Royal Flush – The highest hand possible, a suited 10, J, Q, K, A

Set/Trips – 3 of a kind

Short Stack – Having the fewest chips at the table

Straight Flush – 5 suited cards in sequential order

Tells – Behavior that gives other players information about how you might play your hand

Tight – Someone who only plays premium hands

Tilt – Desperate to re-coup losses, causing bad decisions

Turn – The 4th community card

Under the Gun – First player to bet after the big blind

Wheel – The lowest straight possible with mixed suits A, 2, 3, 4,5

Wired – A pair dealt in the first 2 cards

So there you have it. Learning this jargon will assist you on your path to becoming a seasoned responsible gambler. Good Luck!