What Are the Online Casino Reporting Requirements?

Home » Recent Posts » What Are the Online Casino Reporting Requirements?
Share this on:

Jackpot handpay Epic Fortunes

Most players who play in a physical casino know the reporting requirements for a jackpot, or handpay, is $1,200. So a player naturally wants to know:

So I can win money all day in a casino and unless I win a hand pay, it’s not reported. How does it work with online slot play as far as reporting your winnings?

Debbie F.

The reporting rules, regardless of location, are exactly the same, as it’s an IRS requirement that sets the rules. As such, an online real money gaming casino will have the same $1,200 level for reporting a taxable jackpot.

Of course, being that it’s online, it works a bit differently in that you don’t have someone walking over with a piece of paper and counting money into your hand. 

The online casinos have what are known as Know Your Customer, or KYC, requirements, so when you first sign up they get to know you better than if you just walk into a casino and slide a $20 into a slot. When you get your first reportable win, they may have a few basic questions to ask you, but they’ve oftentimes already captured most of your information.

At the end of the year, you’re able to log in and grab your W2G documents for reportable wins, and use them like any other W2Gs when filing your taxes.

Now note that we said real money gaming casinos. This specifically speaks to the casinos in regulated markets (which as of this posting are about a half dozen states that have legalized real money gaming in their state). 

There are other options out there, and those options will likely follow different rules for various reasons. For instance, social casinos that operate under a sweepstakes model will fall under sweepstakes laws, including around taxes, that players should be aware.

But as far as real money gaming online casinos, the rules are quite familiar.

The thing is, whether won in person or online, all winnings are considered income according to the IRS. But it’s only wins of $1,200 and up that are automatically reported. The rest is up to us as players.

Have a question? Submit yours here!

Share this on:

2 Replies to “What Are the Online Casino Reporting Requirements?”

  • Joel DeWitt says:

    If you live in California, you can not do online gambling

    • FlipTheSwitch.com says:

      This is correct. Real money gaming is available in six states at the moment (Connecticut, Delaware, New Jersey, Michigan, Pennsylvania, West Virginia) with a seventh coming soon.

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 $1 & Get $100 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 get 100 million coins for signing up! All players will receive 5 million coins free (one time only).

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
Fu Nan Fu Nu Slot Machine

Stacked Symbols & a Free Spins Bonus Choice Await You

Prosperity Link Wan Shi Ru Yi Slot

Wild Multipliers Spice Up the Free Spins Bonus

Queenie Slot Machine

The Wheel is Your Ticket to Big Wins and Bonuses

Play Online Sportsbooks

Sign Up to get a Bet $5, Get $200 in Bonus Bets if Your Bet Wins PLUS a Daily Boost or Bonus All Summer!

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

​SIGN UP to get up to $1500 in Bonus Bets* Back if Your First Bet Doesn't Win!

New Players get $50 Bonus Bet with $5 deposit! New players outside MA also get 20% Match up to $1,000 (25x PTR). Additional Bonus Bet offers vary by state - read the review for details!

Social Game Spotlight
Huff N’ Even More Puff

Double Wheel, Double Reels, Double the Fun

Wu Da Jiang

It's All About Multipliers and Progressives

Slingo Super Spin

Hunting for a Full House for the Win