Craps (table games in general) and W2G's.

Since there were quite a bit of discussions on W2G's and taxes lately, I was wondering if there EVER is a time when you would get a W2G from playing a table game like say, craps.

I know at times I have won in excess of $1200 in craps and never had a W2G. Can anyone explain why at table games you don't get one but at a machine you will. I know something like lottery was mentioned and lotteries are subject to tax.

Do you get one because it was a one time hit? What if I had $100 on midnight (12) at craps which is a one roll bet that pays 30-1. If it hits will I get a W2G?

And luck is luck. You still gotta be lucky to win at table games, just like when playing machines and lotteries.

 

No, no W2G's on table games unless you play one of the carnival games and bet one of the carny bets and the hit the associated jackpot

 

I believe the bet at the table has to have odds of 600:1 or greater...thus you get a W2G for a 6 point win on the Fire bet even though a $1 bet only yields a $1000 win.
edit: more accurate info stated below by @FuzzyDiceCraps ↓

 

The issuance of W2-Gs is governed by the tax code, which is a beast even for us attorneys. That said, no W2-G's are generally not issued for table games. However, the tax code requires the casino to withhold taxes at a rate of 25% (regular withholding) or 28% (required backup withholding) for any gambling wins of over $5,000 when the winnings are also greater than 300x the size of the bet, and this is reported on a W2-G. There are few bets at table games that qualify for this - as mentioned above, the carnival and progressive jackpots do and in certain circumstances a bet like a 6-point fire bet would (one reason a lot of casinos don't want to hassle with the fire bet).

 

I believe that this is accurate.

 

A casino is not required to issue a W2-G on this win because of the size of the winnings, however I have heard that some casinos choose to issue a W2-G when the winnings are 300x or greater than the size of the bet and greater than $600.

For reference, the below is an excerpt from a tax-law guide prepared by a colleague of mine who is involved in the regulation of the casino industry in Ohio - similar guides can be found on numerous tax websites. . Although its Ohio-based, the regulations are all federal and govern Nevada as well. Table games would be governed by Bullets 4 and 5, and you'll note Bullet 4 is "at the option of the payer" (e.g. the casino). Bullet 5 is what I was referring to above with respect to mandatory gambling withholding (either regular or backup in the amounts of 25% and 28% respectively)

Report gambling winnings on Form W-2G if:

1. The winnings (not reduced by the wager) are $1,200 or more from a single slot machine spin or bingo game entry;
2. The winnings (reduced by the wager) are $1,500 or more from a single keno game entry;
3. The winnings (reduced by the wager or buy-in) are more than $5,000 from a live-money poker tournament;
4. The winnings, reduced by wager, and not addressed elsewhere, at the option of the payer, are:
   1. $600 or more, and
   2. At least 300 times the amount of the wager, or
5. The winnings are subject to federal income tax withholding (either regular gambling withholding or backup withholding).

Hope that helps!

 

IIRC, when the fire bet was more prevalent, a payout of 250:1 (5 points made) did not trip the threshold for a tax form... I believe the threshold is 300:1 or greater for initiating a tax form...

 

Sounds right.

 

I got a W2G on a $5 firebet that won $5k (all six numbers). No tax withholding.

 

Thanks everyone for all this great information. I think I will stick with craps. My wins never reach beyond the $1200 level based on my level of play but I'd honestly hate to get one around that threshold amount.

 

I had a friend get a W2g after hitting a 7 card straight flush w/joker on Pai Gow poker at Bellagio last year. A $5 side bet at 1000-1 for $5k.

 

Because the threshhold is $5000 (minus the wager). So you were $5 away.

 

That's the best and most complete answer I've ever seen on this.