Hello, So I was playing this video baccarat machine on Venetian's main floor the other day. It was just a regular machine, not one of those stadium live table game machines. Bet limits were $5-$1000 for player/banker. I bet 600 on banker and won my bet. Immediately my machine said I hit a handpay jackpot for $1200. A slot attendant came by to turn off the machine and pay me out, also giving me a copy of my w2g. I asked her why this baccarat machine was classified as a slot machine, even though I was not getting any slot points from it. She said that is just how it is. I went over to the Grazie rewards desk and they told me the same thing. So I was wondering if the VMB community can give me anymore insight into this. Is this actually how it is? I feel awfully silly now betting the $600, and hitting the $1200 threshold AND having to pay taxes on it. thank you for any information. I have attached a pic of the machine I played on as reference.
It seems strange to me as well, but I wouldn't care to hazard a guess and I doubt that there is anyone on this board (as knowedgable as some are) that can give you a proper answer. IMHO, I would request an answer from Venetian as to why, since they gave you the W-2G. IMHO, "That's just how it is" is NOT a satisfactory answer.
It's considered a slot machine, simple as that. Getting points or not getting points doesn't factor into the definition of the device. https://www.vegasmessageboard.com/forums/index.php?threads/taxes-for-high-rollers.117287/#post-1086838 ("ETG" in that post means "Electronic Table Game," the type of machine you played. It would include BJ and roulette on the same type of machine).
When doing the session method for properly reporting gambling wins separately from gambling losses, I count game types the same way that they appear on gaming revenue reports -- the ones released by the Nevada Gaming Control Board being the gold standard. Video poker is mixed in with regular slots, and I expect all electronic table games (ETGs) to count in the "multi denomination" category under slot machines. Each table and counter game (like keno -- not inclusive of video keno) gets broken out on its own. The word "electronic" does not even appear on the monthly NGCB revenue reports ("ETG" also does not appear). This bacc machine example is exactly why the W-2G thresholds need to be increased, and also why taxation in the United States of gambling activity needs to be made both streamlined and less punishing to the gambler. This is especially true with the proliferation of sports betting across the country over the past two years, mixed in with online options for gambling gaining legalization in some states. I advise believing/following 0% of everything I typed above, and that everyone seek the opinion of a certified public accountant and/or tax attorney.
Well, it's the amount that has me puzzled. It was only a 1:1 payout, and I believe that there is something about the odds when it comes to forcing a W2-G. However, that may be horse betting. Here's the definition from the IRS: Who Receives a Form W-2G? Under IRS rules, you must report winnings from any type of gambling activity—including lotteries, racing, bingo, sports, slot machines, and cards—no matter how much you earned. This includes money you may have won in a foreign country. To accurately document your winnings, gaming facilities are required to send you a Form W-2G if your gambling income exceeded any of these thresholds in the previous calendar year: $600 or more from horse racing (if the win pays at least 300 times the wager amount) $1,200 or more from bingo or slot machines $1,500 or more from keno $5,000 or more from poker tournaments Typically, the winnings are calculated by subtracting any wagers or buy-ins from the final payout. Depending on how much you gambled, you may receive W-2G forms from more than one facility. If that’s the case, you would report the amounts from each form individually. If you're sent a W-2G and don't include the winnings on your tax form, there's a good chance you’ll receive an IRS Notice CP 2000 ("Underreported Income") in the mail. That letter will provide information about the apparent discrepancy and include steps you need to take in order to resolve the issue. Even if you don't receive a W-2G, however, you're still required to report your earnings on your year-end tax form. Therefore, it's important to keep documents, such as wager statements and payment slips, any time you gamble. Those documents will also help verify the accuracy of information on any W-2G forms you receive. ---------------------------------------------------------------- Well, I guess I'm wrong and it's ANY slot machine payout of $1200 or more, but look at the section that I have bolded.
I just learned a couple things. Even though the payout is 1:1 ,it hit the $1200 w2g level on a machine. The OP probably thought this would be considered a $600 win . I guess the question I have is ,if you are playing $600 hand ,why not play at a Bacc table or mini bacc ?
As Chuck said. It is considered a slot machine. Any payout over $1200 is a w2-g. Very little logic to this, I agree. But that is how it works.
This also applies to live table games. $600 or more AND at least 300x the bet. Has to meet both conditions in order to generate a W2.
Sounds like we are in agreement on it being considered a slot machine. Hypothetical question. Say I am playing 3 play $1 Bonus VP and I get dealt 4 Aces. I win $1,200. Will this generate a W2G? Or is each hand considered 3 separate $400 wins?