Changing the bonus round to avoid a W2
Quote: DRichYes, many jurisdictions require the use of a card and they can be completely cashless.. The system works almost perfectly for machine play but table games do cause issues. That may be why so many foreign casinos are getting rid of live tables and adding the stadium style games.
So how do Players add and cash out?
They have to link their Players card account to their cc or bank account?
Quote: darkozSo how do Players add and cash out?
They have to link their Players card account to their cc or bank account?
Yes, but most allow a cash transaction at the cash as long as ID is presented.
Quote: rxwineNormally, on a slot machine bonus round, from a single bet, the machine will give so many free spins. If at the end, the total win is at or above $1200 the bonus round generates the customary W2.
What if instead, a bonus round required individual bets for each spin. And while you could still win a the same large amount at the end, no single win would be larger than $1199.
A machine starting a bonus round would message the player that the next 10 bets would be at increased payback. If the player walked away, anyone could benefit from the enhanced bets if they played them off instead.
See, a player could walk away with a multi-thousands on a really good round of bonuses., yet each bet and win is under the acceptable limit and requires some amount of coin-in each time.
In theory, a good idea. I'm sure vultures would like it. However, I think recreational players wouldn't understand it and just want to get paid up front.
I hate to insult anybody, but I think anybody smart enough to consider the tax ramifications of their slot play is probably not playing slots to begin with, unless for AP purposes.
It also may be trying to evade income taxes too egregiously. Maybe a bit off point, but once when I hit a $1250 win in video poker I asked if they could lower my win to $1199 and was firmly told "no."
What does the forum think of this idea -- If the player hits any win of $1200 or over, he is given the option to get $1199 in direct credits and the rest in a free play voucher. Seems a win/win for the player (who takes the standard deduction) and the casino. Uncle Sam is a big loser though.
Nice try! But it won't work. The IRS would view a voucher earned in the context, i.e. earned as part of the payout, as "winnings" under the reporting requirement. The casino would get in trouble if Uncle Sam found out.Quote: WizardWhat does the forum think of this idea -- If the player hits any win of $1200 or over, he is given the option to get $1199 in direct credits and the rest in a free play voucher. Seems a win/win for the player (who takes the standard deduction) and the casino. Uncle Sam is a big loser though.
Quote: WizardIn theory, a good idea. I'm sure vultures would like it. However, I think recreational players wouldn't understand it and just want to get paid up front.
I'd wager if you went into casino, and randomly informed slot players, "See these machines here? No matter how much you win all evening, you'll never have to get a W2, whereas, these machines here, have the exact same odds of winning just as much, but you may get a w2. Which would you rather play?
You don't think that would be popular?
Quote: UP84Nice try! But it won't work. The IRS would view a voucher earned in the context, i.e. earned as part of the payout, as "winnings" under the reporting requirement. The casino would get in trouble if Uncle Sam found out.
In table game tournaments, the prizes are often given in free play (the use until you lose kind) chips. For example, say the win was $100,000. If it was direct cash, it would necessitate a CTR. However, let's say it is given in free play chips. The player circulates them through a table game and has $95,000 in cashable chips. He cashes less than $10,000 per day. No CTR and no law is broken.
If this can occur, why not my free play idea?
Quote: rxwineI'd wager if you went into casino, and randomly informed slot players, "See these machines here? No matter how much you win all evening, you'll never have to get a W2, whereas, these machines here, have the exact same odds of winning just as much, but you may get a w2. Which would you rather play?
You don't think that would be popular?
Exactly my point.
Quote: WizardExactly my point.
It would be illegal for the casino or manufacturer. It would be considered "structuring" and that is against the law. Any attempt to willfully try to get around the reporting requirements for CTR's is illegal.
Quote: DRichIt would be illegal for the casino or manufacturer. It would be considered "structuring" and that is against the law. Any attempt to willfully try to get around the reporting requirements for CTR's is illegal.
DRich, if that is the case then every casino that has cash redemption machines is illegally structuring.
You think people who cash out thousands at redemption machines are being tracked and having CTR's filed on them?
