Ohio man sues casino after $35,000 in winnings stolen

[Balthazar]

I find it shocking you pay tax on gambling in the USA. We used to have a 9% betting tax up until 1991 or something, whereby you could pay 9p in the pound on your bet, and NOT pay tax on the winnings. If you didn't pay the stake tax, you would be liable to have it taken from your winnings at 9%. So you could gamble with the tax lol....
We have never paid tax on slot/lottery/football pools winnings. To do so would leave the government (under the way taxes work here) open to paying tax back on my gambling losses - i.e. I work and pay 20% income tax. I take home 1500 pounds a month. I lose 500 gambling therefore I can claim 100 pounds tax rebate (20%) on my losses IF the government takes tax on any winnings. You paid 40%+ of your win in taxes - that is extortionate.
Is there no way to offset this if you lose? I can't believe the USA has to suffer one-way only gaming tax? Jezze, even the Mafia would take less.

Here we don't pay tax on lottery, but then again the lottery itself is a tax since it's a state monopoly (casinos included). But yes it's ridiculous to win 204k and having just 116k left after tax.

The worst part is when we, Canadians, go south of the border they tax us too and we have to hire a lawyer to fill the paperwork and get our money back. Sometimes it takes months to get it all back.

 

[Balthazar]

my mom just got two hand pays last week - it was cash - they never offered cheque

Where?
I've got handpays in Vegas, Atlantic city and Montreal and they always asked me how I wanted to get paid when the winnings were greater than $1000. Most of the time I split the money in cheque/cash. Of course some slots are capped very low, I've got handpays for as low $600 (they don't ask for these).

 

[dunover]

Here in the USA, the Federal Tax is 26 or 28% and State tax is 16 or 18%(It is different for each state, some states like Florida do not have state taxes on gambling wins) . Combined total taxes was about 44%. Nothing you can do about it, pay the taxes or go to jail... I chose to pay the taxes lol.

You can claim losses upto the amount won that you are claiming on your taxes, BUT you have to be able to prove those losses if you ever get audited on your taxes. And the IRS (internal revenue service) has upto 3 or 5 years to audit you.

LH

Well, at least you've got cheap petrol and don't pay $10.10 for a gallon like us saps in the UK do....

 

[vinylweatherman]

It shows that the US is not the low tax country they make it out to be.

It's split between federal and state taxes, and whilst each may be lower than in Europe, it's a different picture when added up.

The 44% tax is not even on the gain, so you could be down and still have to pay a large tax. The UK doesn't really have an equivalent for this situation as taxes are assessed either on a gain, or a set charge for the use of services provided by the government.

The tax situation could make a 50% RTP lottery a better bet than 90%+ casino games.

 

[dunover]

It shows that the US is not the low tax country they make it out to be.

It's split between federal and state taxes, and whilst each may be lower than in Europe, it's a different picture when added up.

The 44% tax is not even on the gain, so you could be down and still have to pay a large tax. The UK doesn't really have an equivalent for this situation as taxes are assessed either on a gain, or a set charge for the use of services provided by the government.

The tax situation could make a 50% RTP lottery a better bet than 90%+ casino games.

The federal and stake taxes aren't on that scale for working income though, that's the gains rate for windfalls etc. And bear in mind everyday expenditure isn't punitively taxed like in Europe, where the US 'sales tax' is lower than the VAT rate here. There is a good reason planeloads of Britons descend on New York each year for shopping trips..........

 

[skiny]

I only live a few miles from the casino.

What could possibly happen?

 

[vinylweatherman]

The federal and stake taxes aren't on that scale for working income though, that's the gains rate for windfalls etc. And bear in mind everyday expenditure isn't punitively taxed like in Europe, where the US 'sales tax' is lower than the VAT rate here. There is a good reason planeloads of Britons descend on New York each year for shopping trips..........

It's not exactly a windfall though, as it takes no account of the money lost before hitting such a windfall.

It's more likely a morality tax, but it clearly doesn't discourage casinos from building fancy resorts, nor players from flocking to them.

Maybe the tax regime is what the big land casino companies should have challenged, not the competition from online sites. Having to worry about taxes is bound to act as a deterrent, whereas here in the UK it's the business that has to worry about taxes, not the customer.

 

[Simmo!]

This has turned into a very interesting thread

I was amazed when I first came across the US gambling tax but when I sat down and thought about it, it's actually a good thing IMO and I think the UK should consider it.

Why? Because wherever you are, your country needs taxes. The amount required isn't even up for debate if you want to live in a first world country with good infrastructure..there's never enough money. It's where it comes from that is the main cause for concern. So IMO it makes perfect sense to tax luxury items and services more heavily so that people have a choice whether to participate and pay extra tax, rather than have it imposed on the necessities in life, where they don't have a choice.


Regards checques for handpays, I have never been offered that in Vegas and I have had quite a few of them. I know I am "foreign" but I know it is also something (along with bank transfers) that I could have if I asked.

 

[dionysus]

Where?
I've got handpays in Vegas, Atlantic city and Montreal and they always asked me how I wanted to get paid when the winnings were greater than $1000. Most of the time I split the money in cheque/cash. Of course some slots are capped very low, I've got handpays for as low $600 (they don't ask for these).

right here, in the province we both live in
I've not won a jackpot here in Qc, but on the On side, I've won several and never once been offered a cheque, even the $2500 they only asked If I wanted 20s, 50s or hundreds

 

[LHofsdal]

Here in the US of A , at any B^&M Csino , any winnings of $1200 is taxed not on the profit but on the amount as long as its 1200 or more. and that is in addition to trhe statetaxes. The casino demands you sign a piece of paper which is equivalent to w2. That is why some VP machines in Vegas has some winnings a $1199.

Here in New York, (I am not sure if it is Federal or just state regualtions)I know that even if the casinos don't claim it, you are supposed to claim any SINGLE win of $600 USD or more. Single win meaning in 1 hand, 1 slot pull etc. That is on the back of the form I had to sign. If I am not mistaken that is still true as of this day.

LH

 

[skiny]

right here, in the province we both live in
I've not won a jackpot here in Qc, but on the On side, I've won several and never once been offered a cheque, even the $2500 they only asked If I wanted 20s, 50s or hundreds

Remember carrying around the buckets of quarters?

That was much more fun. Especially when you had 2 or 3 of them.

 

[dionysus]

Remember carrying around the buckets of quarters?

That was much more fun. Especially when you had 2 or 3 of them.

lmao and having manky fingers
(though sadly, mine were only filled with nickels)

 

[Westland Bowl]

Remember carrying around the buckets of quarters?

That was much more fun. Especially when you had 2 or 3 of them.

Those casino quarters were the most dirtiest change I've ever carried! Hands get all dirty and smelling like cigarette ash.

 

[vinylweatherman]

This has turned into a very interesting thread

I was amazed when I first came across the US gambling tax but when I sat down and thought about it, it's actually a good thing IMO and I think the UK should consider it.

Why? Because wherever you are, your country needs taxes. The amount required isn't even up for debate if you want to live in a first world country with good infrastructure..there's never enough money. It's where it comes from that is the main cause for concern. So IMO it makes perfect sense to tax luxury items and services more heavily so that people have a choice whether to participate and pay extra tax, rather than have it imposed on the necessities in life, where they don't have a choice.


Regards checques for handpays, I have never been offered that in Vegas and I have had quite a few of them. I know I am "foreign" but I know it is also something (along with bank transfers) that I could have if I asked.

It would be better to place a tax on the RTP though. Like VAT, it would be a tax on participation in the luxury, and would not be a sudden huge slice of what might be the hit that barely lets one break even.

The US version is easily dodged by playing at low enough stakes such that a win big enough to require form filling is not an option.

The UK version seems to be a 15% levy on the hold made by the house from UK players, and is a better way to collect such a tax as it makes it harder to dodge.

US players have always had it take the form of customers having to fill in a form, and this may be why online gambling was such a hit in the US, but took time to gain a foothold in other markets.

If the legal US online operators have to cut some 44% from every half decent hit, they cannot compete with the unlicensed rogue operators that will still seek to take bets from US players no matter how hard the crackdown.

 

[skiny]

Those casino quarters were the most dirtiest change I've ever carried! Hands get all dirty and smelling like cigarette ash.

You must have been winning my quarters.

 

[Stovetopp]

Here in New York, (I am not sure if it is Federal or just state regualtions)I know that even if the casinos don't claim it, you are supposed to claim any SINGLE win of $600 USD or more. Single win meaning in 1 hand, 1 slot pull etc. That is on the back of the form I had to sign. If I am not mistaken that is still true as of this day.

LH

I think that is for horse racing! At least here in Fl .
The collectors are there at the track Its sort of stupid though IMO. If you ate going to bet 10 bucks on a 70-1 shot, buy 2 five dollar tickets. However, the trifecta and those exotic bets
will pay more than $600 usually so not bad after all Take back my word.
I know for a fact the casino only taxes 1200 or more and the track and simuilcast outside is 600 buck and the tax man is right there probably betting also

 

[Balthazar]

Well, at least you've got cheap petrol and don't pay $10.10 for a gallon like us saps in the UK do....

Holy crap that's one scary ass number you have there. At $10/gallon I'd friggin' stay home. It's $5/gallon here right now and we're getting ripped off big time paying much more than almost everywhere else in North America.

I hope we'll never allow our government to tax energy that much.

 

[skiny]

So you walk into a casino with $10k, lose $9k and then hit a $10k progressive, get taxed about 4k and walk out $3k in the hole?

What's the point?

 

[nisosbar]

So you walk into a casino with $10k, lose $9k and then hit a $10k progressive, get taxed about 4k and walk out $3k in the hole?

What's the point?

Now, I'm not a tax lawyer, but I believe this situation is why so many professional gamblers beseech others to keep records - BECAUSE at tax time, you can deduct your losses - so that if are faced with a situation such as you are asking about, you would not (in theory) really be out anything (except for lost interest from letting the IRS float your withholding of "4k"). But as gamblers, you know that this is a possible scenario.

 

[Westland Bowl]

Recently, ABC's 20/20 show did a feature on this guy. He actually went back to the same casino and won an additional $130,000 !!! This time they gave a check. Everybody calls him lucky, but I'd certainly like to see his betting strategy!

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