Slot with W-2 Avoiding Strategy

If this idea holds up to the IRS's inevitable challenge, it could be a game changer. Vital Vegas via casino.org: https://www.casino.org/vitalvegas/new-slot-machine-helps-players-avoid-w-2g-tax-form-headaches/

Quote: LoquaciousMoFW

If this idea holds up to the IRS's inevitable challenge, it could be a game changer. Vital Vegas via casino.org: https://www.casino.org/vitalvegas/new-slot-machine-helps-players-avoid-w-2g-tax-form-headaches/
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this is NOTHING new

i live in PA and have spoken with a person who manages a small private club which has VGT machines in it. They have the option to choose machines which pays a maximum of lower than the legal limit so they can dodge the tax forms and what not and that is from the manufacturer

I've never seen a machine before which can (purportedly) pay out a $25,000 bonus without a W-2. Setting machines to payout a max of $1199 is indeed old hat.

Quote: heatmap

Quote: LoquaciousMoFW

If this idea holds up to the IRS's inevitable challenge, it could be a game changer. Vital Vegas via casino.org: https://www.casino.org/vitalvegas/new-slot-machine-helps-players-avoid-w-2g-tax-form-headaches/
link to original post

this is NOTHING new

i live in PA and have spoken with a person who manages a small private club which has VGT machines in it. They have the option to choose machines which pays a maximum of lower than the legal limit so they can dodge the tax forms and what not and that is from the manufacturer
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I thought the PA small private club VGT's were capped at $1000 prize by law.
Perhaps we're thinking of different things.

Quote: Dieter

Quote: heatmap

Quote: LoquaciousMoFW

If this idea holds up to the IRS's inevitable challenge, it could be a game changer. Vital Vegas via casino.org: https://www.casino.org/vitalvegas/new-slot-machine-helps-players-avoid-w-2g-tax-form-headaches/
link to original post

this is NOTHING new

i live in PA and have spoken with a person who manages a small private club which has VGT machines in it. They have the option to choose machines which pays a maximum of lower than the legal limit so they can dodge the tax forms and what not and that is from the manufacturer
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I thought the PA small private club VGT's were capped at $1000 prize by law.
Perhaps we're thinking of different things.
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well he was explaining it to me ... he may have not known and i definitely dont have knowledge of the laws that particularly

but he specifically mentioned it had to do with taxes

I've had a similar idea for many years. Those in the industry I've bounced it off of just poo-poo'd it, with explanation.

Quote: Wizard

I've had a similar idea for many years. Those in the industry I've bounced it off of just poo-poo'd it, with explanation.
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Yes, I can't imagine that anybody in the industry would want to set up a showdown with the Feds, which this will do. I wonder if the slot company had to offer an indemnity agreement to get the machines placed. Even if it is technically constructed to fall outside the reporting requirements, courts can and do cut through such constructions. For example of that, see the Areo case analyzed here: https://copyrightem.com/wnet-v-aereo-is-renting-a-tv-antenna-copyright-infringement The case eventually made it to the US Supreme Court; where the majority basically said, "if it looks, like a duck, walks like a duck, and quacks like a duck, it is a duck" (not exactly a shining example of legal reasoning, IMHO). Wikipedia has a decent writeup: https://en.wikipedia.org/wiki/American_Broadcasting_Cos.,_Inc._v._Aereo,_Inc.

I hope if this does go to the courts, the machine maker makes the point about the $1,199 jackpots in plain view. Everybody knows the reason for that number -- evading taxes. I have won significant amounts in table game tournaments and the winners are always paid in non-neg chips, so the winner can avoid the tax. One can't be blamed for pushing the envelope a little further.

Very cool idea.

My only comment/complaint is that one of the screens indicated that the average payout is $1000.

Since $1000 is the top payout on the bonus, how could that also be the average?

Quote: DJTeddyBear

Very cool idea.

My only comment/complaint is that one of the screens indicated that the average payout is $1000.

Since $1000 is the top payout on the bonus, how could that also be the average?
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One of the options is $100+ a spin