Social Security Number-Casinos for US

Wildfire7

Dormant account
Joined
Apr 9, 2006
Location
UK
Why all of a sudden these casinos need your last 4 digits of your social if you are from the US when you make a deposit. I think this is bias to me. If this in the wrong section please move it.
This is an extra layer of protection for the casino, in case of any investigation from the IRS. In the UK requests for the NI/National Insurance number are rare.

If you had gambling winnings, the casino is required by the IRS Information Reporting rules to withhold 28% as income tax if you do not provide a documented TIN (Taxpayer Identification Number, that is, your Social Security Number.) There have been cases where it is withheld no matter what. The withholding tax is 30% if a foreign gambler. The tax rate is 25 percent if the amount is over $5,000 (except for non resident aliens.)

When your winnings exceed a specified threshold and tax is withheld, the casino will give you an IRS Form W-2G showing the amount you won and the amount of tax withheld. Report (and take credit for the tax you paid) on your IRS Form 1040 tax return at the end of the year. (Only use Form 1040 if you had gambling winnings, you cannot use any other form.)

Source : IRS : Data Handbook


Mike
 

Wildfire7

Dormant account
Joined
Apr 9, 2006
Location
UK
Was this implemented after the UEIGA was pushed back 6 months? Because I never came across this before.
Before October 2006 Internet gambling in the United States was totally unregulated and untaxed. So it has only been in the past couple of years the SS number has started to be requested.

The UIGEA pushback as far as I am aware has not affected this issue. It is the individual casinos now wising up to the reality of it all, in trying to avoid leaving themselves wide open. It is more of an insurance policy for the casino rather than a condition.

Mike
 

winbig

Keep winning this amount.
Joined
Mar 10, 2005
Location
Pennsylvania
I think they are simply asking for the last 4 of your social for identification purposes, should it come down to that. I remember some casinos asking for the last 4 digits of your SS number dating back pre-UIGEA. I seem to remember certain MGS casinos asking for this, but I could be mistaken.

Of course they're not asking for your whole SS number. Anyone that gave that information out to an online casino is just plain stupid, IMO. B&M casinos don't even ask for this, until the time that you try to make a transaction at the cage for $10,000 or more in one shot or $10,000 in combined transactions. It's rather easy to get around the combined transactions part, unless you go to the same cage and end up dealing with the same cashier all of the time.

Online casinos never have reported squat to the IRS, nor will they ever, until the day comes that online gambling is legalized and regulated in the USA. It would be rather stupid if they were to report to the IRS before then.

The bottom line is the fact that there's literally nothing anyone can do with the last 4 of your SS number, so I've never had an issue of giving this information out.


Before October 2006 Internet gambling in the United States was totally unregulated and untaxed. So it has only been in the past couple of years the SS number has started to be requested.

FWIW, Internet gambling is still unregulated and untaxed. The UIGEA is a "law" without any teeth at the moment, and may never even see the light of day if Barney Frank and others have their way.
 

Wildfire7

Dormant account
Joined
Apr 9, 2006
Location
UK
FWIW, Internet gambling is still unregulated and untaxed. The UIGEA is a "law" without any teeth at the moment, and may never even see the light of day if Barney Frank and others have their way.
Just because something is not yet law, does not mean casinos cannot be prepared and to be seen to be doing the right thing.

Mike
 

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