Why did I receive a W2G?
As an operator, BetMGM must inform the IRS of the following:
- Whenever a player has $1,200 or more in gambling winnings from bingo or slot machines
- Whenever a player has $1,500 or more in winnings (reduced by the wager) from keno.
- Whenever a player has more than $5,000 in winnings (reduced by the wager or buy-in) from a poker tournament.
- Whenever a player has $600 or more in gambling winnings (except winnings from bingo, keno, slot machines, and poker tournaments) and the payout is at least 300 times the amount of the wager; or
- Any other gambling winnings subject to federal income tax withholding.
For a more detailed overview please see below.
Casino games, this includes all table games except where there is a live dealer with Ezugi and Evolution, are taxed at $1200 and greater. No exceptions
- Bet is not subtracted from the win.
- Taxes are 24% at Federal level and taxes at state level vary by state.
- US citizens and permanent residents simply add W2Gs to their tax filings (no tax withholding)
- Note: Evolution has some games that are taxed.
Sports – threshold of winnings must be 300 times the bet
- $600 and greater but less than $5000 are taxable but no tax withheld
- $5000 and greater are taxable immediately; taxes must be withheld
- Taxes are 24% at Federal level and taxes at state level vary by state.
- Taxable amount is the win minus the bet
- Free bets are not deducted from the win Both types receive W2Gs at the end of the year.
Poker – tournaments
- >$5000 for W2Gs
- Winnings are reduced by the wager
- Taxes are 24% at Federal level and taxes at state level vary by state.
- US citizens and permanent residents simply add W2Gs to their tax filings (no tax withholding)