Do You Pay Taxes on Social Casino Winnings?

Home » Recent Posts » Do You Pay Taxes on Social Casino Winnings?
Share this on:

Brian Christopher with big LuckyLand Slots win

We often get asked about the tax scenarios regarding redemptions on social casino sites with a Sweepstakes component. We also get asked about bigger redemptions, given some of Brian’s amazing wins over the years. Here’s one example:

How easy is redeeming online winnings and are they taxable? When you won the 10,000 SC it raised this?

Debra H.

There are both regular questions we’ve received over the past few years, since Brian began playing Chumba Casino and its sister site, LuckyLand Slots.

For those not familiar, both are social casinos that have a sweepstakes component to them. You can receive FREE Sweep Coins through daily sign-ins, participation in social media posts, through scratchers offered during certain Brian Christopher Sweeps lives, when you purchase most Gold Coins offers, and more. You can play on these sites completely free and without being required to make a purchase.

Let’s start with redemptions. Bigger redemptions can take longer than the standard redemption window. When Brian redeemed a few months back on LuckyLand Slots for his 200,000SC+ Grand jackpot win, there was a process that took a few weeks and included getting a document notarized. 

LuckyLand Slots works with a third party on redemptions above 50,000SC and an additional set of steps are followed, so a 10,000SC win would be redeemable under the standard process that any player would follow. They advise 5-10 business days for redemptions as their promised window, and players will often see them beat their promised windows. 

Still, it’s nice to not be overpromised – their set time windows are effectively what to expect during their absolute busiest times.

When it comes to the tax question, some players get confused because oftentimes we see they expect that they would follow physical casino rules for taxes, but sweepstakes have their own rules under United States tax laws. 

For U.S. residents, regardless of source, any income earned is required to be reported. As such, any winnings gained through a sweepstakes is considered income.

The rules regarding a reportable jackpot followed by physical casinos wouldn’t be followed here, as this is a sweepstakes and follows sweepstakes laws instead. So, for instance, scenarios where you would get paperwork from a physical casino for wins over $1,200 would not be the same on a social casino or in a sweepstakes.

Just because you don’t receive tax paperwork does not mean you don’t have to file your sweepstakes wins, however. As a result, we always recommend players discuss with an accountant familiar with navigating sweepstakes laws so they can ensure they properly follow appropriate laws and file their taxes accurately. 

While many people will play tax expert on social media posts, it’s never a great idea to use forums as a way of soliciting tax advice. And as we are not accountants, we state the above as helpful information, but not legal tax advice, and reiterate our recommendation to speak to an accountant you trust to help you specifically.

Have a question? Submit yours here!


Share this on:

4 Replies to “Do You Pay Taxes on Social Casino Winnings?”

  • Nancy says:

    I claimed$1,300 redemption for on line winnings. How do I pay the taxes? Will I get a form from the casino?

    • FlipTheSwitch.com says:

      If you are speaking to social casinos, as noted in the article you won’t get any forms. You report it on your taxes as income. If you are not sure how to do this, we recommend working with an accountant with familiarity with sweepstakes laws to be able to assist.

  • Tina LeMay says:

    What if you win small amounts and just take out $200 at a time? Do you still need to pay on it? Or win a large amount and take small amounts like $150 at a time. Are taxes needed? After the thousands I have spent.
    Another question:
    People post from Chumba and Luckyland saying things like post spin in replies and get a $200 reward to your account. It takes you to so many area and surveys etc… so I completed this. Never received a thing after spending over and hour on it to complete this. Are these scams?

    • FlipTheSwitch.com says:

      Hi Tina – all income is considered income, regardless of the redemption amount. So it would, in the eyes of the IRS, all need to be reported as income.

      As far as the replies, it’s not legit – Chumba and Luckyland run giveaways on their own page, but don’t post on other pages randomly offering giveaways (or make you complete offers to get something in return).

Leave a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Play Online Casinos

Sign Up with BetMGM Casino and get a Deposit Match up to $1,000, plus $25 in Site Credits on the house! Available in MI, NJ, PA & WV. US promotional offers not valid in Ontario.

Use code SWITCH2500 for a 100% deposit match up to $2,500, and 2,500 Reward Credits, with $25+ in wagers placed (MI, NJ, PA & WV).

New sign-ups with DraftKings Casino in MI, NJ, PA & WV will receive $35 Casino Credits, plus Play $5 and Get $50 Back in Casino Credits Instantly!

Sign Up and deposit $10+ at FanDuel to get a Welcome Offer of a $20 Bonus + Up to $1,000 Play it Again based on your net losses in the first 24 hours in MI, NJ, PA & WV!

Play Social Casinos

Ready to give Show Me Vegas Slots a try? Get 10 million coins to play Show Me Vegas Slots with promo code SWITCH!

New players to 88 Fortunes Slots receive 5 billion coins as a thank you for signing up!

Sign Up and get a Welcome Bonus of 2,000,000 FREE Gold Coins & 2 FREE Sweeps Coins. Get started today!

Sign Up for LuckyLand Slots and get a Welcome Bonus of 7,777 FREE Gold Coins & 10 FREE Sweeps Coins!

Online Game Spotlight
Dragon Jin Long Jin Bao

Super Tall Bonus Reels at Stake

Double Patriot

Classic Everi Three-Reel Slot with a Fresh Twist

Play Online Sportsbooks

Sign Up to get a Bet $5, Get $150 in Bonus Bets if your bet wins!

Use code SWITCH1000 to get your first bet back in Bonus Bets, up to $1,000, if you lose.

​SIGN UP to get $150 instantly in Bonus Bets* (NC, $5+ bet required) or up to $1500 in Bonus Bets* Back if Your First Bet Doesn't Win (All Other Eligible States)!

New Players get a $1,500 No Sweat Bet, a $50 Bonus Bet with $5 deposit, & Get a No Sweat NBA SGP Every Day of NBA Playoffs! New players outside MA also get 20% Match up to $1,000 (25x PTR).

Social Game Spotlight
Slingo Super Spin

Hunting for a Full House for the Win

Kronos Unleashed Slot

Frequent Feature Livens Up Super Tall Reels

Dragons vs. Pandas Slot Machine

Two Sets of Reels Battle it Out