tax on winnings for foreigner

I read gambling winning are taxed in the USA at 50% for foreigners.

is this true?
I find it hard to believe any Asian whale would travel to gamble in Las Vegas if their winning is cut in half by the tax office...

Supposed to be subject to 30% withholding at the Federal level. The regular gambling withholding (for citizens) is 28% for winnings in excess of $5000.

Quote: irs.gov

Payments of gambling winnings to a nonresident alien individual or a foreign entity are not subject to reporting or withholding on Form W-2G. Generally, gambling winnings paid to a foreign person are subject to 30% withholding under sections 1441(a) and 1442(a) and are reportable on Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons, and Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding. Winnings of a nonresident alien from blackjack, baccarat, craps, roulette, big-6 wheel, or a live dog or horse race in the United States from legal wagers initiated outside the United States in a parimutuel pool are not subject to withholding or reporting. See Pub. 515, Withholding of Tax on Nonresident Aliens and Foreign Entities.

www.irs.gov/instructions/iw2g/ar02.html

It occurs to me that it would be very easy to avoid this withholding, but don't know how much detail I should probably get into in that regard....

The U.S. also has tax treaties with certain other nations to exclude withholding on winnings. Japan and England are examples. Forms are required to be submitted to a representitive. The larger joints will have the paperwork in the cage. Be sure to have your passport with you.

The airport walls are filled with ads by companies that will get the taxes back for you.

A small fee may apply.

We have a large percentage of Canadian customers. When they have a taxable win we file form 1042-S Foreign Person's U.S. Source Income Subject to Withholding. We are required to withhold 30% of the winnings. Our Canadian customers tell us it is pretty easy to get this money back from the U.S. government.

Mark