How Do Casinos Pay Out Large Sums Of Money?Let’s say, for example, you win $25,000 or less on a slot machine. You will have the option of being paid by cash or check. However, if the win is larger that $25,000, your options change depending upon the casino you are playing at. There are several different ways you can be paid your winnings. The first, of course, is the lump sum payment. Another way is through an annuity, wherein the money you’ve won is paid out in installments. Winners will be given up to 90 days to decide if they want the lump sum or the annuity. Note that many casinos will pay the entire amount up front.
$5000 or More in WinningsAll winnings specifically from poker tournaments and slot machines — are taxable at the federal level, and some may be taxable at the state level, too. “Since each state has its own set of regulations for gambling taxes, be sure to pay close attention to the local requirements before filing your next tax return. In addition to state tax, the IRS also taxes gambling winnings. For certain games and for larger winnings, winners will need to file IRS Form W2-G. No matter the amount, all winnings must be reported on the next tax return if the earnings exceed these wins.”
- $1,200 or more from a slot machine or bingo game
- $1,500 or more in keno winnings
- $5,000 or more in poker tournament winnings