CASH VS. FREE PLAY

In VPfree2 glossary section about W2G's, at the end of the definition was a comment about the casino not having to give out a W2G or 1099 if the payout($1200.00+ for VP) was in free play vs. cash. Is this something the casinos would do if asked by the player? Has anyone experienced this themselves? Interesting concept if it were available.

Quote: oldbudman

In VPfree2 glossary section about W2G's, at the end of the definition was a comment about the casino not having to give out a W2G or 1099 if the payout($1200.00+ for VP) was in free play vs. cash. Is this something the casinos would do if asked by the player? Has anyone experienced this themselves? Interesting concept if it were available.

I'm no expert on slot jackpots, but it would seem to me you should get a 1099 for that jackpot instead of a W-2G. When a poker jackpot is hit, 1099's are issued to those that qualify because there was no bet placed in winning the jackpot.



ZCore13

Quote: Zcore13

I'm no expert on slot jackpots, but it would seem to me you should get a 1099 for that jackpot instead of a W-2G. When a poker jackpot is hit, 1099's are issued to those that qualify because there was no bet placed in winning the jackpot.



ZCore13

you work at a casino and do not know that you get a w2g on a slot jackpot? Unless I read your post wrong.

Quote: GWAE

you work at a casino and do not know that you get a w2g on a slot jackpot? Unless I read your post wrong.

You read it wrong. He's asking about free play on video poker and the possibility that there is no w-2g using free play.. In poker if you win a jackpot where there was no wager placed it's a 1099. Maybe legally it's the same in slots? I don't work in slots. I don't care what they do in slots. Just saying if its correct there is no w-2g, it could still be a 1099.


ZCore13

Quote: Zcore13

You read it wrong. He's asking about free play on video poker and the possibility that there is no w-2g using free play.. In poker if you win a jackpot where there was no wager placed it's a 1099. Maybe legally it's the same in slots? I don't work in slots. I don't care what they do in slots. Just saying if its correct there is no w-2g, it could still be a 1099.


ZCore13

I've won jackpots on freeplay and always was given a w2g

Never was questioned if it was freeplay or cash either

Quote: oldbudman

Has anyone experienced this themselves?

no. I hit 2 jackpots on video poker over the years using only free play credits and both were well over $1200 and both triggered a w2g.

I would contact that website
and
have someone explain where that info came from and the context of that information specifically.

"In general, IRS Form 1099 are not given for Video Poker wins (unless the win involves a free drawing or lottery scenario).
Neither a W2-G or 1099 are given for wins paid in "Free Play"."

At least in Nevada and California, I have never seen it
Sally

Quote: mustangsally

no. I hit 2 jackpots on video poker over the years using only free play credits and both were well over $1200 and both triggered a w2g.

I would contact that website
and
have someone explain where that info came from and the context of that information specifically.

"In general, IRS Form 1099 are not given for Video Poker wins (unless the win involves a free drawing or lottery scenario).
Neither a W2-G or 1099 are given for wins paid in "Free Play"."

At least in Nevada and California, I have never seen it
Sally

Sally’s quote says win paid in Free Play. Like an invitational poker tournament where you win $10k in free play. That’s different than upthread where people are talking about winning a cash jackpot by paying free play into the machine.

Quote: unJon

Sally’s quote says win paid in Free Play. Like an invitational poker tournament where you win $10k in free play. That’s different than upthread where people are talking about winning a cash jackpot by paying free play into the machine.

agree.
I did not read that page slow enough

was waiting for the Texans to win NFL game
they did!
Sally

Quote: mustangsally

agree.
I did not read that page slow enough

was waiting for the Texans to win NFL game
they did!
Sally

No one in this thread read OP slow enough! Looks like same distinction about getting paid FP vs using FP who win $.

Great win by Texans!

Quote: Zcore13

You read it wrong. He's asking about free play on video poker and the possibility that there is no w-2g using free play.. In poker if you win a jackpot where there was no wager placed it's a 1099. Maybe legally it's the same in slots? I don't work in slots. I don't care what they do in slots. Just saying if its correct there is no w-2g, it could still be a 1099.


ZCore13

If you are using free play then you are definitely given a W2g. I wonder if that is technically correct since you are using something that has no cash value. I am betting that if you fought it with the IRS you technically should be given a 1099. No one is going to do that since a 1099 is worse.

If you are given free play instead of cash then there shouldn't be a 1099 or a w2g because you are being given something that has no cash value. Same as when you win a drawing. When they give free play as the prize there is no tax form given.

If in fact what was stated in the VPFree2 web-site and by GWAE above is accurate, wonder why the casino's don't offer it as an option. Would certainly save them money not having to go through the process of collecting, filing and reporting the tax information, plus it would guarantee the winnings are ran back thru their machines. Certainly some players would like the thrill of the cash in hand, but others might be fine with the free play. Seems to simple to me so I must be missing something.

Quote: oldbudman

If in fact what was stated in the VPFree2 web-site and by GWAE above is accurate, wonder why the casino's don't offer it as an option. Would certainly save them money not having to go through the process of collecting, filing and reporting the tax information, plus it would guarantee the winnings are ran back thru their machines. Certainly some players would like the thrill of the cash in hand, but others might be fine with the free play. Seems to simple to me so I must be missing something.

My guess is it would effect their marketing budget. I dont know for sure but they budget x amount and wouldn't want it used up by a payout.

Another thought is could it be considered tax evasion?

I think it could be considered tax evasion.

It would be nice if every casino did that, though. I'll take freeplay over a W2G any day of the week. Hell, I may even be willing to give up a % just to get FP and not a W2G. Well, I definitely would, I just don't know how low I would go.

I don't think it'd effect their marketing department, because this wouldn't be under the marketing team's "jurisdiction". Or if somehow it was, then the marketing budget could get increased by however much whenever a jackpot is hit and the player takes it in freeplay.


Assuming it gets around the "tax evasion" part, I'd think it'd be smart for a casino to offer something like a 5% bonus if you take it in free-play. This way it guarantees the money gets cycled through again (and on slots, that's a net win for the casino), and on VP that's a very small loss for the casino ($10,000 cash goes to $10,500 FP, which turns into $10,290 on a 98% machine and $10,185 on 97%).



Something else these casinos should do is instead of getting a W2G -- let's say you hit a $1 RF for $4k. Instead of winning $4k, it should put you into a bonus round, exactly like in Shockwave VP, and every play in the bonus round pays $1k for 4 rounds.


Or they should program them to "malfunction" whenever a jackpot is hit, and the casino just be like, "Oh even though the machine malfunctioned we'll still pay you that amount, or we'll give you free-play in that amount, just to keep the customer happy. Oh, this happens for every jackpot? Eh, oh well."