Every gambler looks for a way to trick casinos and make the most out of their slot machines. The tough part is sifting through the bad advice and good advice available. Online slots may come down to chance, but like all casino games, there are always some tips and tricks you can apply to help you maximize the odds of seeing a payout. Whenever you play slots in a land-based casino, a mobile casino, or an online casino like CoolCat, some things should be factored in before you start playing them for real money. This guide will show you the simplest ways to trick the slots and the system, to give you the best return on your playtime.

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But first, let’s get started with the basics.

What is a slot machine?

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Slot machines are gambling games with three or more spinning reels. The reels display symbols that spin and land randomly to form potential winning combinations after a player places a bet. Wins are determined when certain symbols line up in a sequence; these are the paylines. An amount is awarded according to the size of the wager, the type of winning combination, and the number of paylines that hit. Slot machines come in a variety of forms, from online slots, classic three or five-reel slots, and the most popular of all, video slots.

How a slot machine works?

Regardless of the type of slot that you choose to play, they all function according to the same principles. You place your bet and initiate a spin, while this takes place an internal computer chip in the machine randomly determines whether you win or lose for each spin.

These computers are random number generators or RNGs. An RNG cycles through thousands of number combinations and stops the moment a player hits the spin button. The results are displayed for the player after the reels stop spinning. RNGs are always tested and certified by third-party agencies to make sure that they are fair and reliable, and that outcomes are not rigged.

Many times in a casino you will hear players say whether certain tables or slots are running hot or cold. However, because slot machines operate on RNGs, no amount of luck or perceived hot or cold streaks will impact the outcome of each spin. Each time a player hits a button to spin the reels or pulls the arm of a machine, the result is a unique event. Slots machines and online slots games are therefore never due to hit regardless of what someone might tell you. Streaks and payouts boil down to a matter of pure chance, even multiple jackpots can occur for a single machine.

Regardless of what you choose to play, and whether or not you’ve gambled before, these top 15 tips can be applied to any kind of online slot machine, be it a 3-reel, 5-reel, 3D slot, or a classic layout. Implement these into your slots strategy, and you’ll already be well on your way to becoming a pro and winning yourself the biggest rewards.

1. Get to know slots and how they work

Slots aren’t exactly complicated — you select your betting amount, hit spin, and the machine essentially does the rest. However, since game developers started to include more features in these games, like multiple reels, paylines, and symbols, the layout and mechanics may seem a bit overwhelming to beginners. Give yourself time to get familiar with the rules and inner workings of a game before you start playing for big bucks. That way, you’ll get to know what combinations are needed to win, what symbols trigger certain bonus rounds and features, and what you should place as your bet amounts.

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2. Find a slot that suits your style

As slots come in thousands of different themes these days, it never hurts to have a good look around to find one that matches your mood and motivates your playing style.

Most online casinos have all sorts of different slots that are centered around your favorite celebrities, movies, animals, places, and hobbies — so you’ll be completely spoiled for choice and always able to select a new theme that coincides with your style and bankroll.

3. Check the software provider

The best slots and most high-efficiency casino games are developed by companies like Realtime Gaming, NetEnt, Microgaming, and other leading names in the industry. If you can clearly see a slot game is backed up by one of these brands — it’s bound to be a reliable one. This quality alone will make a huge difference to the gameplay and how likely you are to see a return on your bets. Shoddy slots will only let you go so far with a game and may only payout during a bonus feature. The best slots give you the chance to hit the jackpot and have loads of fun at the same time.

4. Take advantage of no deposit bonus codes

Here’s the dirty little secret with online bonuses: if you know where to look, you can get a lot for free; meaning bonuses with no deposit needed.

These deals are always given to new players when they sign up to a casino, and most continue to dish these out to players on a weekly and monthly basis even after they’ve signed up. Common bonuses you can utilize on slots include no deposit bonuses, match bonuses, and free spins bonuses. These are all great offers that can provide more to play with during your gaming sessions.

Slots strategy is about giving yourself as many slots advantages as you can. A lot of playing the slots comes down to chance, which is why the best strategies are about seizing whatever opportunities you can to get ahead.

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5. Don’t play the slot; play the online casino

Thanks to U.S. gambling policies, Americans are able to claim some of the best value Casino bonuses of any players in the world. If you’re in America, taking advantage of this can double, or even triple your bankroll, with surprisingly few strings attached.

One of the best slot machine tricks is to look for bonuses with low wagering requirements and no maximum cash-out limits. Many casinos trick new players by offering a large bonus and hiding that you’ll need to bet a huge amount before you can redeem it.

What to look for in a good bonus: first, find wagering requirements of 10x or less. Many Casinos have wagering requirements as high as 50x, which means that on a $100 deposit, you can’t get your money until you’ve made $5,000 in bets! Also, avoid bonuses that come with a maximum cash-out. Find a bonus that doesn’t limit how much you can win from it (nothing worse than winning a jackpot and getting $100…)

The CoolCat Casino 330% Welcome Bonus has only a 5x wagering requirement (compare that to any other bonus online), and no maximum on how much you can win while using it. Plus, it comes with 50 Free Spins on our popular game, Popinata. So you have some spins to warm up (and win), and your $50 becomes $165. That bankroll will give you the breathing room you need to jump-start your slots streak. Just make a free account at CoolCat Casino, then claim your bonus at the cashier by entering the code COOLWELCOME.

6. Find the loosest online slots

If it has been a while since you had a winning spin then it really might be time to consider changing the machine you’re playing on or switching to another online slots game. Even though this might sound crazy, it’s actually true. Slots vary in how easily they pay out, and according to industry insiders and leading experts, major gaming centers avoid placing loose slot machines close to each other. The best option when you’re on a losing streak is to move on to an adjacent slot machine or try your hand at a completely new online slot game. Remember, each spin is a completely unique event, so feeding more coins into a losing machine in no way increases your chances of finally winning.

I’ve done this myself on a number of occasions and found, much to my surprise and delight, that by the time I had moved on to a second or third online game, my luck had returned and bonus spins were racking up. If the machine is cold, walk on into the light. This is one of the slot machine tricks that simply increases your chances of finding a loose machine as well as extending your playtime and jackpot potential.

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7. Know your limits and manage your bankroll

Before you start playing, it’s important to set a loss limit. It’s easy to let the excitement of the casino floor take hold, but you may end up with more spills than thrills if you don’t know when to stop. Everyone loves to win, and if you find yourself way up, it’s a good time to stop. Statistically, the longer you play the better the chances are that you will lose your money. If your bankroll is heading towards a slump, be sure to stop once you’ve reached your loss limit. Never chase losses.

Gambling is a phenomenal form of entertainment and can grow your bankroll exponentially, so have fun, but always play responsibly. Although you are just as likely as the next person to win big on a slot machine, or perhaps a coveted jackpot, be smart and don’t overdo it. Slots can take patience because a big hit can occur in ten seconds, ten minutes, or heaven forbid ten hours. As long as you have your loss limit in mind throughout your rounds of play, you’ll be in good shape if the going gets tough.

In addition, bonuses do endless favors for your bankroll, but keeping a watchful eye on your funds is the key to success in gambling. We never advise risking more than you can afford to lose, so managing your bankroll should be a top priority. Bankroll maintenance can be as simple as placing reasonable deposit amounts and not opting for bets on games that will deplete your funds too quickly.

Set yourself a loss limit, then stick to it.

8. Know where not to play slots

It is no big news that it is easier to win on loose slot machines — the hard part is finding one. These machines are placed all over the casino quite strategically and in a meticulous way. Physical placement revolves around the fact that the casinos want everyone to see a big win. It encourages others to play, so often loose machines are to be found in highly visible areas.

On the other hand, there can be pitfalls to visibility. Airport slots are highly visible, but people are coming and going at a frantic rate. These slots are known to be some of the worst to play at any gambling destination. It’s far better to wait until you’re actually in the casino. Scope out a spot with a wide range of machines so you can move on if you hit a cold streak, but one that’s highly visible without being a major rush transit area like reception by a restaurant buffet with a lot of motion or an airport mall.

For even better chances to find loose slots, look no further than your computer. Online slot machines generally pay out more than slots on the Las Vegas Strip. Having a constant stream of players makes it possible for real money online casinos to offer slots with the best odds yet.

9. Play slots with random or progressive jackpots

Another notable feature of slot machines is the jackpots. There are two categories: fixed and progressive. Slots machines with a fixed jackpot will have a maximum payout/jackpot amount that does not change. Whereas for progressive machines the jackpot increases the more people play on them. A fraction of their bet falls into the jackpot pool, and the jackpot will continue to increase until won. Progressive machines usually come with an indicator that shows the player that the maximum payout can change based on how many people play that particular machine, therefore making the jackpot progressively higher or lower.

Whether or not one should play on progressive jackpot slot machines is a hotly debated issue among casino gamers. Though some would say that progressives are the only true way to strike it super-rich at the casino; many claims that it’s quite the long shot, even as difficult as winning the lottery. Whatever the case, playing on progressive slot machines is a lot of fun. If you manage your bankroll well and pace yourself, you just might find yourself entering the millionaire’s club.

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One school recommends avoiding progressives. While a life-changing win may be uber tempting, with high potential rewards comes, all too often, low payout rates. I mean, that mega jackpot has to be built up somehow and it’s not usually by being liberal in the payout department. If your playing philosophy is to spend a lot of time having a lot of fun and picking up pleasant but not exactly earth-shattering winnings, then you should avoid progressives.

The second school of thought says that progressives are really the only true way to strike it super-rich. With odds similar to those of winning the lottery, it’s a long shot but playing progressives is a lot more fun. If you’re able to manage your bankroll properly, pace things, and not get too carried away, progressives do offer the chance for you to walk into the casino as a poor nobody and walk out a member of the millionaire’s club. And I mean, come on, there is a certain thrill to the prospect.

Beyond that, it’s not hard to find a large random jackpot worth tens of thousands of dollars. The real trick is that random jackpots like Achilles and Caesar’s Empire are actually won daily, while progressive jackpots can stick around for years.

10. Practice your strategy and play slots for free

Another thing you can find to spin things to your advantage (pun intended) is to find exciting online, free slots with free spins and try out a game, and hopefully, start building your bankroll for free. It’s an easy way to learn a game, plus a free chance to win.

Many bonuses come with free spins to use already, but there is often the chance to trigger bet multipliers and free spins during the bonus rounds in slot games. This can be achieved by lining up a certain combination of Scatter or Wild Symbols on the reels. Not all games have free spins, but you’ll get even more chances to hit a payout without dipping into your bankroll if you find any games that do.

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11. Betting slot machine tricks

“Bet Max” is what a regular gambler hears all the time when playing on slot machines. There is a common misconception that if you do not bet the maximum bet every time you will always lose to the casino in the long haul. However, that’s not quite how it works. This strategy can actually increase the odds for you on some specific machines.

Any seasoned slot enthusiast will tell you to stay away from the penny and nickel slot machines because the payouts are very poor. Fortunately, this isn’t really an issue for online slots. All you need to do is to choose whether to bet the minimum of maximum coins. You could spend hours wasting away in front of a nickel or penny slot only to find out that the jackpot you hit is not worth the effort. It isn’t half as rewarding as hitting it big on a machine that has higher bet minimums and larger jackpots or prize multipliers. Up the ante and avoid those $0.01-0.05 machines in order to win really big.

The truth is that on the great majority of slots, your chances at winning are absolutely the same whether you bet minimum or maximum. The difference is simple: the more you risk, the more you can win on a lucky spin. This is particularly true when it comes to online slots with special features and bonus rounds.

All slot machines have a set “volatility.” A high volatility slot machine doesn’t pay out as many wins, but when it does, the wins can be huge. In order to take advantage of the exponential size of the multipliers on these high volatility games, it can often be a good idea to bet high.

On the other hand, low and medium volatility slot machines pay out a large amount of smaller wins, and a few big ones. These machines are more about slow and steady winning the race, so you won’t feel the need to bet as high as you can to hit that one huge payout.

But what about those gigantic progressive jackpots? I mean, who doesn’t love the idea of becoming a millionaire in the blink of an eye? From everything I’ve been able to glean, there are two schools of thought on this one (yes, it’s a double-edged sword) depending on your playing philosophy.

High bets can also be beneficial when you’re playing a game like Fucanglong, which has incredibly powerful bonus features. When you trigger a Feature on any slots game, you get a number of Free Games to play at the value of your bet. So if you’re swinging big with $15 bets, and you hit a Feature like the Dragon Pearl … watch out baby, watch out.

12. Pay tables matter a lot!

It is very important to always check on the payout rates of every single slot machine you decide to play and most importantly, you must check on this before choosing a slot machine. Each slot machine has its own set-up with different payouts, and the outcome can really make a difference.

The paytables hold key information in slot games, such as the rules and features, plus the RTP (return to player percentage) or hit frequency. The RTP is the percentage you’re likely to get from playing a slot game over time, so if, for example, a slot had an RTP of 97%, this means for every $1 you spend, you’ll get an average of 0.97 cents back in winnings. Note that the RTP doesn’t mean you’ll get this amount back after every spin — it’s just how the winnings are calculated over the long term when playing a slot.

For online slots, the pay tables can be found under the help and rules menu of each game. Pay tables and the number of paylines can vary widely by game, so taking the time to do a bit of homework and select the games with the best pay tables, advantageous paylines, and most bonus features. This simple step can go a long way to making you a big winner.

13. Practice your strategy and play slots for free

There’s nothing like a test drive. One of the biggest perks about playing slot games online is the fact you can try them all out for free before putting any money on the line. Most online casinos offer you the chance to play for free before you switch to real money and CoolCat is no exception. CoolCat Casino has a free, no download, instant play feature that allows you to give your favorite slots (and many table and specialty games) free spins to your heart’s content.

This isn’t an option in land-based casinos, which is why we always encourage players to use freeplay mode if they aren’t too sure about how a slot works and want to get some experience before playing for real money. Give yourself time to build up your slot playing skills and switch to real money mode once you’re ready.

Simply put, this is an excellent way to study the pay tables, paylines, and bonus features of the slots that pique your interest before going for the gold with real money on the line. In all honesty, I spend a lot of time using the instant play function, especially when new games come out, sussing out the ones with the best bonus features likely to give me more bang for my buck. Create an account today and play for free.

14. Keep an eye out for even bigger bonuses

The best way to make your bankroll go farther is to take advantage of the huge promo offers that occasionally pop up. Sometimes it’s a seasonal thing, sometimes the casino is just ready to push a new offer, but if you keep your eyes peeled, you can sometimes snag some incredible deals.

One of the many incredible benefits of playing slots online or at a traditional brick and mortar casino is signing up for casino bonuses. The various bonuses that casinos offer will reward players with serious benefits, based on how frequently they play and how much they wager and deposit each time. These rewards can be substantial. So, if you’re going to spend your money gambling, why not utilize the bonuses when signing up? New players can expect excellent welcome bonuses simply for joining, and weekly promotions or holiday specials can keep players coming back.

The benefits become even greater if you take advantage of loyalty, club member, or VIP programs. They come in a variety of forms, such as bigger than normal match bonuses, free spins, and more. So make sure to look for ones that suit your style of play. Land-based casinos will offer “slots club” cards for instance, and keep track of the amount you play on slots every time you enter.

Playing online has various opportunities that will be beneficial to you and your pockets. Some casinos will even give you points back as cash, or extend certain offers revolving around birthdays, holidays, or special events. These on top of managing your budget properly will stretch your gambling buck even further. Be sure to be registered as a club card member, valued player or have signed up for bonuses before you take a spin on the slot machine. Even if you don’t win, you can still get credit for every time you play.

Promo offers can include bigger than normal match bonuses, free spins, and more. If you’re interested in receiving exclusive offers, sign up to hear about our latest bonus offers. Once a member of a casino like CoolCat, you will get regular bonus offers by mail as well as updates regarding special new game promotions, seasonal promotions, and weekly, sometimes daily promo offers. Rather than just playing with your $30 deposit, you’ll be able to turn that into an impressive bankroll with the help of some of the other offers that come around (remember, you should now know what to look for when picking your bonus).

15. Be mindful as you play

A sensible approach to playing any game is not to have too high expectations. Having this mindset will do nothing but set you up for disappointment from the very beginning and cause you to make hasty decisions that could leave you worse off than before you started. Smart gambling isn’t always about putting huge chunks of cash on the line; it’s about taking your time with a game, being strategic and precise with your bets, and utilizing bonuses wherever possible.

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In conclusion, these few, simple slot machine tricks can take a bit of the randomness out of random, increase your odds of winning and definitely help you have more fun over a longer period of time with you given bankroll. And heck, you never know, I guess that’s why we all love to play slots, you may walk away with a win so big your life will never be the same again! As far as I’m concerned, the thrill of that all too real possibility makes playing slots well worth the time.

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Jan 30 '18 at 17:09

Tax Advice for Casino Players: W2-G Handpay Jackpots, Filing as a 'Pro' and More

The feeling of stress and anxiety that comes when filing taxes can be overwhelming for anyone, but especially for casino players that hit slot jackpots or enjoy other high stakes gaming.

Everyone has a different opinion about how to file, and there are very few resources available that give gamblers peace of mind. That’s why I recently sat down with Ray Kondler of Kondler & Associates. Ray is a Certified Public Accountant based in Atlantic City and Las Vegas.

He’s also one of the top national experts on gambling taxes.

While Ray works closely with the World Series of Poker, he also serves slot and table players in all 50 states. In our fascinating conversation, Ray gave us the insider’s look at gambling taxes, keys for minimizing the chances of an audit, and tips for paying as little as possible… while staying within the bounds of the law, of course!

Here are the highlights from our great conversation. (You can also watch or listen to the full episode below.)


The First Thing Gamblers Should Know About Taxes

One of the most common questions new gamblers ask is, “When do I have to report my winnings?” The answer actually varies depending on what you play.
Casinos will issue W-2Gs for winnings greater than $1,200 from a slot machine or $5,000 from poker. The moment you hit the jackpot, a casino staff member will bring the W-2G to you at the machine to get a signature (although new technology is emerging in high limit slot areas that lets players electronically sign the W-2G so they can get back to playing right away). The casino sends a copy of all W-2Gs to the IRS.
(Table game players don't face the same level of scrutiny. Casinos don't issue W-2Gs for table games like craps and blackjack.)
Did you know that the IRS matches up the W-2Gs the casino sends with your tax return?
This is extremely important! If you fail to file those winnings on your tax return, in most cases, the IRS will send a notice asking you to amend your return.
Want to protect yourself from an audit? Download our FREE Casino Player's Logbook to start keeping better records of your gambling activity.

As Ray points out, this practice isn’t limited to land-based casinos. Cruise lines also issue W-2Gs, and US Citizens are required to pay tax on gambling income earned worldwide — not just in the US.
The bottom line is, if you receive a W-2G, don’t ignore it. The IRS sure won't...
Once gamblers know which winnings to report, the next question is usually, “How do I minimize my tax bill?”


Filing as a Professional Gambler

When Ray sits down with a client, one of the first decisions they make is whether the player should register as a professional gambler.
Most slot players wouldn't even think of filing as a professional. (To be honest, I didn't even know that was an option before speaking with Ray). For slot players, especially retirees or those with limited other income, filing as a professional gambler comes with a unique set of advantages.
In most states, a normal casino player (aka amateur gambler) can only write off casino losses up to their total winnings. So, for example, if you have $100,000 in W-2G winnings, but lost $150,000 during the year, you can only write off $100,000 of losses when filing taes.

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***Note: some states (Connecticut, Illinois, Indiana, Massachusetts, Michigan, West Virginia, and Wisconsin) do not allow amateur gamblers to deduct gambling losses from their winnings. The only way around this is to file as a professional and deduct losses as an “expense of doing business” on a Schedule C.
On the other hand, a professional gambler can deduct other expenses associated with their casino play (it's a JOB after all - ha!). If they have $100,000 in W-2Gs, they can write off $100,000 in losses AND subscriptions to gambling resources, travel and meal expenses, home office expenses, and legal/professional fees. Professionals can then actually show a net loss on their Schedule C (Self-Employment) tax return and deduct it against their other income (like taxable Social Security income).
So who can qualify as a professional?
It turns out, qualifying as a pro isn’t based on winnings. It’s actually based on how much time someone spends gambling. Someone who plays slots five or six hours per day and has no other job could most likely file as a professional. This is especially useful for gambling retirees!
When advising retired clients, Ray recommends filing as a professional as soon as their Social Security income is taxable (over $40,000). This allows any below-the-line gambling losses to reduce taxable income.
Filing as a professional makes sense for many casino players, but there also are a few downsides to be aware of.
First, filing as a professional increases your chances of being audited.
Another downside is if you file as a professional and win a significant amount, you’ll have to pay Social Security tax.
Depending on the amount of Social Security tax, it may be smarter to file as an amateur. This is something Ray and his team help their clients figure out. They’ll complete the tax returns both as a professional and as an amateur. Then they will see which filing status makes the most sense for the client for that particular year.
It’s also worth noting that filing as either a professional or amateur one year doesn’t lock you in to that status for following years. For example, let’s say you filed 2016 tax return as an amateur gambler. In 2017, you gambled the same amount of time, but due to an increase in winnings, it makes more sense to file as a professional. This is allowed by the IRS. You can decide which filing status is right for you on a year to year basis.


How to Protect Yourself From a Tax Audit

While casual and moderate gamblers have a relatively low chance of being audited, the prospect of being audited is stressful for anyone. Ray says the most important thing you can do to protect yourself is to keep good records.
It might be a pain in the neck, but everyone should keep clear, detailed records — especially if you’re filing as a professional.

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Ray recommends using a dedicated credit/debit card to charge all gambling-related expenses. Then keep track of all gambling activity with a logbook.
Want to protect yourself from an audit? Download our FREE Casino Player's Logbook to start keeping better records of your gambling activity.

Most of Ray’s clients log their activity in a spreadsheet at the end of the week, but he has many clients that keep daily records. While there are several logging apps available to gamblers, they tend to be clunky or difficult to use. Some clients use old-fashioned pencil and paper, but Ray recommends keeping a spreadsheet.
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The team at Kondler & Associates have even created several logbook spreadsheet templates they send to their clients to simplify the process.
Some gamblers think of keeping logbooks as an unnecessary step. Instead, they simply rely on the win-loss statements casinos send out to their loyalty club members. This can be effective, but any gambling done at other casinos (where they don’t have a loyalty card), isn’t reflected in those statements.
By keeping a logbook, you can ensure your losses at any casino (even those where you aren’t a loyalty member) are accounted for in your taxes. This lowers your tax bill and protects you
Ray also points out that even if you failed to keep a good logbook in the past, you can go back and recreate it. In the event of an audit, the IRS can request ATM receipts to prove your records are accurate. But if you claim to have gambled with cash from a safe deposit box, no one can prove otherwise.
Another thing to consider for slot players is how to handle the tax liability from a 'group pull'jackpot (for those that don't know, this is where a group pools money and hits the high limit slots in search of JACKPOTS). Let's say you and four other players decide to throw equal money into a pot and hit the high-limit slot rooms. If the group hits the jackpot, only ONE person will sign the W-2G, meaning that person accepts all of the tax liability (even though they only took 20% of the winnings!).
The way to avoid getting stuck footing the entire tax bill is to document the payouts with 1099s. If you win a big jackpot in a group pull, make sure to gather the other players’ full names, addresses, and Social Security numbers before handing out the money. Then issue a 1099 to each player for their share of the winnings.
If you do the extra step of issuing 1099s to the people in the winning group pull, then when you file your taxes, you can feel comfortable only claiming your 20% take of the jackpot on your tax return because you'll have a nice paper trail to show the IRS if they come sniffing around.


Comps and the IRS

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When casinos issue comps, gamblers can potentially receive incentives worth thousands upon thousands of dollars. So, how does the IRS tax these comps?
The short answer is they don’t tax comps.
In over 30 years of working as a CPA, Ray has never seen a 1099 issued for comps. This would be a record-keeping nightmare for casinos if they had to document every meal or lodging comp for tax purposes.
He has seen 1099s issued for prizes though. For example, if there’s a drawing and you win $2000, you’ll receive a 1099 for “other income”. This is also true for prize winnings like free cars or other expensive merchandise. While it’s different from a W-2G, it’s still required to report on your taxes, but these are extraordinary circumstances.
Regarding normal comps, there’s no need to report them as income.

Professional Help for Gambling Taxes

Whether you’re a slot player, table gamer, or poker player, there’s a good chance you’d rather spend your time playing than worrying about taxes.
There are a lot of extremely talented CPAs all around the country, but many don't have a clue how to minimize tax winnings because they rarely see it. Ray's team works on minimizing tax exposure from gambling winnings all day every day
So, if you have any questions about gambling taxes, feel free to reach out to Kondler & Associates HERE. They never charge for calls or emails, and they’re extremely quick to reply. They’re an incredibly valuable resource, so don’t hesitate to reach out. For more on Ray and his firm Kondler & Associates, visit KondlerCPA.com.
Want to protect yourself from an audit? Download our FREE Casino Player's Logbook to start keeping better records of your gambling activity.

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2 Comments
FEB 3 '18
I'd like to add a little color to this article by pointing out a few changes that will go into effect for the 2018 tax year as a result of the new tax bill. Professional gamblers used to be able to deduct expenses as well as offset winnings with losses. The new way, their deduction is capped at the amount of winnings. More significantly, for mid-rollers like myself (I do $4,000 - $5,000 a day coin on slots over about 28 days a year in Vegas; some years I have no handpays and some years I have a few) - while it is true that winnings can still be offset with losses if you itemize, because of the increase in the standard deduction as well as the elimination of the personal exemption(s) and capping of property/state tax deduction at $10,000, the threshold for itemizing has basically been doubled. Whereas in the past, I have always been able to totally offset W-2G winnings with losses, with the new law and my current level of still allowed itemizable deductions (mortgage interest and property/state income tax) I would now have to have at least $12,000 in W-2Gs to be able to itemize, and even then, I would still end up paying Fed taxes on that first $12,000. Finally, with respect to group pulls - I've organized several and I have always been lucky to have a UK resident participating who is not subject to taxes OR withholding. Under the new tax law, I will not do one unless that condition is present. I'm not saying you shouldn't do one, they're a lot of fun, but if you do, make sure you consider the tax implications and discuss how you are going to handle a handpay with the participants ahead of the event. Hitting a big win and then determining that 12% or 22% or more is going to have to come off the top is not going to be a welcome surprise to the group.

Handpay Slot Wins

FEB 6 '18