Starburger
Starburger
Joined: Dec 26, 2019
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October 10th, 2020 at 7:39:35 AM permalink
Quote: beachbumbabs

Just speculation, but if the top prize had been the $500 you actually won, I'd be surprised if they made you do the paperwork. Guessing that the boothlings had instructions on doing the forms for the 1k, and when you split it, they did it anyway. Maybe you saw them do that to the lower amount winners, too. But I bet it was just you and the other person.



I had to do paperwork because I had never won any money from them in a giveaway Game before.
ChumpChange
ChumpChange
Joined: Jun 15, 2018
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October 10th, 2020 at 10:14:49 AM permalink
South Dakota Supreme Court: Casino free play not taxable
By Jaci Conrad Pearson - Black Hills Pioneer - Dec 19, 2014
https://www.bhpioneer.com/local_news/supreme-court-casino-free-play-not-taxable/article_5584b698-87a5-11e4-8051-6b7e6045ba34.html

Is Free Play Considered Taxable Income? - 07-02-2016
http://slotfanatics.com/showthread.php?18785-Is-Free-Play-Considered-Taxable-Income
kdk wrote: It is not taxed. I have won a few drawings at one of my local casinos. Once it was $1000 in cash- and they gave me a tax form with it. Then won there again and instead my prize was $1000 in freeplay. No tax form for that. For any drawings/prizes anything over $600 cash is taxable. Winnings from the freeplay are taxable of course though.
pelotari wrote: I will confirm what kdk said, and I have had similar wins. I was called in a drawing where there were several winners of $1000 cash. Each of us collected at the cashier, and were given a 1099 tax form (not a W2G) and a copy was sent to the IRS. It was a 1099 since it was a drawing that had no fee to enter, as opposed to a slot win. Then another time I was called in a drawing and won $10,000 freeplay. There were no tax forms on that.
Last edited by: ChumpChange on Oct 10, 2020
darkoz
darkoz
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October 10th, 2020 at 11:21:15 AM permalink
Quote: ChumpChange

South Dakota Supreme Court: Casino free play not taxable
By Jaci Conrad Pearson - Black Hills Pioneer - Dec 19, 2014
https://www.bhpioneer.com/local_news/supreme-court-casino-free-play-not-taxable/article_5584b698-87a5-11e4-8051-6b7e6045ba34.html

Is Free Play Considered Taxable Income? - 07-02-2016
http://slotfanatics.com/showthread.php?18785-Is-Free-Play-Considered-Taxable-Income
kdk wrote: It is not taxed. I have won a few drawings at one of my local casinos. Once it was $1000 in cash- and they gave me a tax form with it. Then won there again and instead my prize was $1000 in freeplay. No tax form for that. For any drawings/prizes anything over $600 cash is taxable. Winnings from the freeplay are taxable of course though.
pelotari wrote: I will confirm what kdk said, and I have had similar wins. I was called in a drawing where there were several winners of $1000 cash. Each of us collected at the cashier, and were given a 1099 tax form (not a W2G) and a copy was sent to the IRS. It was a 1099 since it was a drawing that had no fee to enter, as opposed to a slot win. Then another time I was called in a drawing and won $10,000 freeplay. There were no tax forms on that.



The confusion is that there are two types of Freeplay but they appear identical.

Gifted or won freeplay is taxable

New membership offers although the amounts generally too small to generate tax forms.

Freeplay from drawings etc is taxable.

Freeplay earned by gambling does not count as Income to the IRS. That is a cost rebate similar to free hotel rooms for your play. Amounts don't matter (a person with a $50 Theo may get free rooms several days a month that exceed his losses. Still not taxable. It falls under a discount or rebate)
For Whom the bus tolls; The bus tolls for thee
DRich
DRich
Joined: Jul 6, 2012
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October 10th, 2020 at 11:27:10 AM permalink
Quote: ChumpChange

For any drawings/prizes anything over $600 cash is taxable.



Not true. Every dollar won is taxable but winnings over $600 cumulative over the year get issued a 1099.
Living longer does not always infer +EV
ChumpChange
ChumpChange
Joined: Jun 15, 2018
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October 10th, 2020 at 1:01:32 PM permalink
So if I win 3 drawings on 3 different days for $250 in free play at the same casino, they whip out the 1099 on the third one because the cumulative goes to over $600?

Alternatively, I'm assuming points on a card can be converted to free play and those never generate a tax form.

If I get $675 in free play in a mailer, that won't generate a tax form either?
DRich
DRich
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Thanks for this post from:
ChumpChange
October 10th, 2020 at 1:11:48 PM permalink
Quote: ChumpChange

So if I win 3 drawings on 3 different days for $250 in free play at the same casino, they whip out the 1099 on the third one because the cumulative goes to over $600?



The casinos that I worked at would just send it at the end of the year.
Living longer does not always infer +EV
darkoz
darkoz
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October 10th, 2020 at 3:20:58 PM permalink
Quote: ChumpChange

So if I win 3 drawings on 3 different days for $250 in free play at the same casino, they whip out the 1099 on the third one because the cumulative goes to over $600?

Alternatively, I'm assuming points on a card can be converted to free play and those never generate a tax form.

If I get $675 in free play in a mailer, that won't generate a tax form either?



See my answer above
For Whom the bus tolls; The bus tolls for thee
AlanMendelson
AlanMendelson
Joined: Oct 5, 2011
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October 11th, 2020 at 3:59:46 PM permalink
Since when are rebates taxable?
Since when is free play taxable?
billryan
billryan
Joined: Nov 2, 2009
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OnceDear
October 12th, 2020 at 8:12:59 AM permalink
Quote: AlanMendelson

Since when are rebates taxable?
Since when is free play taxable?



Not a tax expert, but some rebates have been taxable for a long time. My parents bought a car in 1976 that came with a $500 rebate that was considered income and was taxable. A few years later, their next car came with a rebate but wasn't taxable.
My understanding is that free play isn't taxable, but the winnings from free play are.
darkoz
darkoz
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ChumpChange
October 12th, 2020 at 8:52:19 AM permalink
Quote: AlanMendelson

Since when are rebates taxable?
Since when is free play taxable?



The IRS distinguishes between freeplay earned as a rebate (mailers) and Freeplay given without a purchase (new membership offers, gift and prize drawings)

These fall under the exact same rules as with bank cash rebates and gifts.

There was a banking offer of several hundred dollars deposited upon opening accounts with certain minimums years ago. Those deposits were considered gifts for opening accounts and taxable (many patrons were surprised when they found out later

Otoh, cashback delivered into your account from say a discover card or other card is NOT TAXABLE as that is considered a rebate on purchases made.

You can withdraw the money from these rebates on your discover card without paying taxes (otherwise it would be a joke to say it's only taxable if you withdraw it).

Likewise Freeplay based on prior play is not taxable EVEN THE WINNING AMOUNT AFTER IT'S PLAYED for the same reason as cashback rebates
For Whom the bus tolls; The bus tolls for thee

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