Empire Casino - Electronic Roulette & Taxes

Can anyone comment on how taxes work at Empire Casino?

The way it works is any win over 600 automatically prints out a ticket instead of adding to your existing money to bet.
Now I have several thousand in tickets but am a bit concerned about what the tax implications will be.

So far I've cashed about 1800 in tickets, I've had to show ID and gave my social. However, the cashier told me "no tax taken".

I assume I'm under some threshold that I may reach in the near future.

I am a resident of NJ and the casino is in NY, not sure what difference that may make.

I've seen the mentions of the 300:1 rule. Not sure how that applies to roulette because you could never get a 300-1 payout.

Thanks

short hand as long as they have your SS# they wont hold taxes. No need to report anything to NY as you do not live there.

You must report it on your tax return.

So I need to keep a running tally of what I've accumulated because this adds to my taxable income at the end of the year, correct?

The 300-1 rule doesn't apply to roulette, hence you don't get taxed immediately. But it could be a bookkeeping measure to avoid things like tax evasion or money laundering under the "Bank Secrecy Act".

http://en.wikipedia.org/wiki/Casino_regulations_under_the_Bank_Secrecy_Act

As others have said, you technically due owe tax for a net gambling win for the year; however, you are allowed to deduct losses for this purpose. So if you win $1000 in one session, lose $800 in another, and win $200 in another, lose $400 in another, and win $300 in the last session of the year, you are supposed to pay taxes on the following amount of winnings: $1000 - $800 + $200 - $400 + $300 = $300.

Here is the applicable New York state law:

http://gaming.ny.gov/pdf/New%20York%20State%20Gaming%20Commission%20rules%20(Lottery).pdf

Sect. 2836-20.3 Credit Redemption

(b) When any prize won at a video lottery terminal exceeds the threshold for
reportable lottery winnings established by the Internal Revenue Service, the video
lottery terminal shall print a voucher which shall only be redeemable at an attended
validation terminal. The attendant at such validation terminal shall obtain personal
identifying information from the prize winner for tax reporting purposes.
(c) When any prize won at a video lottery terminal exceeds $2,000, or such other
amount determined and published by the division, the video lottery terminal shall
enter a lock up state and an attendant shall be called to verify, initiate and witness the
printing of the voucher and shall document same.

Note: $600 is the federal lottery threshhold. So you may be getting tax forms come February, or whatever. So keep records to count losses against this.

This is what I was thinking is the case. So how can you itemize your losses without scrutiny?

I'm keeping excel records but most of my bankroll I started with cash, so is there a standard way to itemize your losses to be acceptable to the feds?

Quote: beenitty

This is what I was thinking is the case. So how can you itemize your losses without scrutiny?

I'm keeping excel records but most of my bankroll I started with cash, so is there a standard way to itemize your losses to be acceptable to the feds?

Something like Excel should be good enough.

See my edit: Since you are technically playing a "video lottery" game (that behaves exactly like roulette, yes it makes no sense), you are subject to the IRS rules on lottery winnings and the 300:1 rule is irrelevant. Also note, video poker in NY racinos are not from a standard deck either.

Another reason it's done this way is to collect any taxes, child support, repayment of unemployment, etc., to the state of NY. I guess they just say thanks, we paid part of your bill for you. Sometimes people offer their tickets at a discount to avoid them, but sometimes it's a scam altogether.