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.