We’ve discussed the arbitrary nature of the taxable handpay jackpot, and how it doesn’t matter how much you bet, because the amount of winnings that triggers one is the same. This means bigger betters are more likely to achieve one (or many) than smaller ones by the nature of how it’s defined.
So how does that translate to bonus buys?
If you buy a bonus for 1000 and hits over 1200, is it a taxable handpay or is the 1000 deducted, making it just a couple hundred win?
Josh R.
Just like any other spin, a taxable jackpot is defined as winning $1,200 or more on a single wager (increasing to $2,000 on January 1, 2026). The size of the wager doesn’t matter, and the wager is not deducted from the winnings to determine the number. So, like betting bigger, buying a bigger bonus puts you at a higher risk of achieving a jackpot that is reported to the IRS.
Brian Christopher’s bought plenty of bonuses on his real money online gaming channel, and traditionally bets higher stakes online because of the higher payback percentage expected playing online vs. in physical casinos.
Online casinos still issue the paperwork, but since you set up accounts and verify information upfront to withdraw and make purchases to begin with, and the inability to put cash in hand, they tend to work more seamlessly, although there’s still a jackpot reported to the IRS.
So the amount of the bonus buy won’t have any impact on whether you get a jackpot, and when it comes to slow wins the wager is not deducted. If your goal is to not end up with a lot of reportable jackpots, it’s best to lower the bet, if only because it’ll be harder to reach that threshold to begin with, and you can aim to have less paperwork to deal with at the end of the year.
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