Players dream of hitting a big jackpot when they play the slots. When that day comes for you, you'll have questions about the taxes you must pay on the winnings.
Who Pays Slot Machine Jackpots Machine
Hand Pay Jackpots
Stick to machines with small jackpots and fixed payouts. The bigger the jackpot a slot machine. Gambling authorities are there to ensure that the gaming industry is operating correctly. Also known as volatility or payout frequency, variance refers to how often a slot pays out jackpots, and the size of the winnings. Slot variance can be broken down into three types: Low variance slot games - these games land wins frequently, but the amounts are usually small token jackpots.
When you hit the winning combination of symbols for a large jackpot, your slot machine locks up. Depending on the machine, the lights on top of the machine may come on and start flashing, music may play or bells ring. A slot attendant arrives promptly to see what you have won.
On jackpots smaller than $5,000, an attendant verifies that you hit the jackpot and then assists you in claiming your money at the cashier's cage. In the case of a large or progressive jackpot, the casino may have technicians come and check the machine to certify that it was functioning properly when the jackpot hit. If you hit one of the wide-area progressive machines such as MegaBucks, the slot company that operates the game comes out and verifies that machine before giving you a check.
When you hit a jackpot, you have the option of taking your winnings in cash or check. Usually, large amounts are paid by check. In the case of the MegaBucks or similar multi-million dollar jackpots, you receive a check for the partial amount, and then you have 90 days to decide if you want to be paid a lump sum or an annual annuity on the balance. If you select the lump sum option, you receive only a percentage of your actual winnings. For example, the full winnings of one multi-million slot jackpot is paid in 25 annual installments, or you can take a lump sum of 60 percent of the winnings.
IRS Withholding
All casino winnings are subject to federal taxes. However, the IRS only requires the casinos to report wins over $1,200 on slots and video poker machines or other games such as keno, lottery or horse racing. When you have a win equal to or greater than $1200, you are issued a W-2G form. This form lists your name, address and Social Security number. The casinos are not required to take out withholding tax on jackpots under $5,000 as long you supply your Social Security number. If you don’t provide your Social Security number, the casinos withhold 28 percent on small jackpots.
You can request a specific amount of withholding tax to be taken out of any jackpot you win. Some players like to do this to avoid a big tax payment in April when they file their income tax returns. The additional withholding may not be necessary if you keep a log book. The law allows you to deduct gambling losses up to the amount of your winnings. You can only do this if you have documentation of your losses. Keeping a diary or log book is the way to do this.
Proper Identification
Casinos can refuse to pay you until you produce proper identification—a photo ID such as a driver’s license, military ID or passport.
If you don’t produce an ID, you are photographed and the casino holds your winnings until you come back with proper ID. For this reason, you should always carry a valid form of identification with you when you visit the casino.
When the casino checks your identification, it also checks your age to make sure you are legally old enough to play. The minimum age for gambling varies from state to state, but under-age gamblers are not be paid if they hit a jackpot. This is the law in all jurisdictions, and it has been upheld in court.
Plan Ahead
Before you start playing your favorite slot machine you should have a plan for the day you hit a jackpot. Players become excited when they hit the big one, and this may affect the decisions you make about your winnings. It is helpful if you know ahead of time how much withholding you want taken out or whether you want a check for all or some of the amount.
The highest-paying symbol of all is the buffalo, worth 300 coins for the maximum five in a row, double the amount that you’ll win for either the eagle or the hyena. The real money game has a minimum bet of 75 credits and a maximum of 375, while coin denominations start at just one cent.
There are five jackpot payouts total in Buffalo Grand Slots you can win. The lowest payout is the mini and they rise through the minor, major and super, before reaching the Grand Jackpot, where you can win some very impressive (even life-changing) payouts. This jackpot is seeded at half a million dollars and the progressive nature of the prize means it will go much, much higher than this.
For a chance of winning the Grand Jackpot you’ll need to be playing for a bet size of 300 or 375 coins, while the higher the stake you play for, the more chance you’ll have of winning one of the other jackpots.
Bonus Rounds & Fun Bonus Features
The number of free spins awarded on the wheel depends upon how many scatters you used to activate the feature. The minimum three scatters will see you awarded with between eight and 15 free games, four scatters awards you between 15 and 30 free games and the maximum five scatters wins you between 20 and 50 free spins.
During the free games, any wins that are aided by the wild symbol will be the subject of a 2x or a 3x multiplier. The scatter symbol will now be replaced by a golden coin during the feature and this will award a scatter win of 100, 500 or 1,000 coins if you hit three, four or five anywhere on the reels.
Bonus Feature: Buffalo Grand Jackpot Wheel
Who Pays Slot Machine Jackpots Slots
The final symbol on the reels is the golden wheel, which acts as the scatter. Land three or more of these anywhere on the reels and you’ll enter the jackpot feature. You’ll now be presented with a ‘wheel of fortune’ style of wheel, which contains a number of segments. Inside these segments you’ll either see a jackpot win amount or a number of free spins.
Slot Machine Jackpots
Bonus Feature: Buffalo Grand Wild Symbol
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A striking sunrise behind a couple of large rocks is the wild symbol on Buffalo Grand. This symbol only appears on reels 2, 3 and 4 and will substitute for any other symbol on the reels apart from the scatter to create more wins.