spike logo small



Gambling Income: a New Slot Machine Helps to Avoid W-2G Tax Form

Gambling Income: a New Slot Machine Helps to Avoid W-2G Tax Form

Double Jackpot Blazing 7s

Canadian gamblers are particularly enjoying a new slot machine branded Light & Wonder (formerly Scientific Games): we're talking about Double Jackpot Blazing 7s With Quick Hit (High Limit Edition), a game that is particularly popular these days. The motivation?

This new slot machine helps bettors avoid having to fill out the W-2G tax form required by U.S. regulations regarding casino games.

American gaming regulations and Canadian laws

First of all, we need to make an explanation. In the United States, when gamblers win a "taxable" Jackpot, it is mandatory to declare it to the Internal Revenue Service (IRS). This is a body responsible for collecting U.S. federal taxes, but also important for administering the Internal Revenue Code, a key body of federal tax law.

In U.S. casinos, if a gambler achieves a winnings of $1,200 and up, the prize is paid directly to the lucky person. This mode is called "handpay."
The player only needs to provide his or her personal documents, and it will be the gambling establishment's responsibility to report the winnings to the IRS by means of a form called W-2G, the completion of which is a chore for both the bettors and the casino itself.

This $1,200 stake has been in place since 1977, and since those years, there have been several attempts to increase the limit to $5,000. Moreover, if we consider current inflation, the threshold should be set at almost $6,000.
For international players such as those in Canada, moreover, the process of reporting any winnings becomes even more complicated.
In fact, if a Canadian gambler wins a Jackpot, one-third of his prize is withheld instead before the amount is disbursed. So, the winner will already receive the prize after taxes.

How does Double Jackpot Blazing 7s With Quick Hit (High Limit Edition) work?

Although this high-volatility slot machine may look similar to the others, it stands out by having a different Bonus round than usual.
In fact, in the case of Bonus you will have a specific number of spins on the wheel: spins that cost and the cost is a credit. In other words, you are betting on each spin.

Plus, you have to keep in mind that the wheel has different sections where you can win, but also a space where you lose. More specifically, the wheel has a space where you lose that happens about 1/999 spins.

Practically, the creative features of this wheel mean that each spin is independent. And because the maximum winnable on each spin is $1,000, the value is below the IRS tax reporting requirement threshold.
And even if the player wins on six different spins, $1,000 at a time, thus totaling $6,000, he/she still does not have to file the W-2G.

This is because the prizes won, are technically six separate $1,000 prizes, as each spin involved a bet that could potentially be lost.
Perhaps you can see why this slot machine has won the hearts of Canadian players. However, remember that the big selling point of Double Jackpot Blazing 7s With Quick Hit is the Bonus round that is not always reached. In fact, to have a chance to take every advantage of it, you have to access the Bonuses.

What happens when you win more than $10,000?

We need to point out that in the fortunate event of winning more than $10,000, the process is different, as another reporting mechanism comes into play. Since not only banks are required to report financial transactions of $10,000 or more to obey the Anti-Money Laundering Act and to fight crime. The IRS will somehow be aware of the payout, although it will get there through alternative means.

Bottom Line

Somehow, Double Jackpot Blazing 7s With Quick Hit (High Limit Edition) with its Bonuses has managed to get through the stringent gambling regulations, gaining approval from entries such as the Nevada Gaming Control Board and the Nevada Gaming Commission.

Now we will see in the future whether the creative way of circumventing the burden of tax paperwork will be targeted by regulators.
If not, it is likely that other casino game manufacturers will create gaming systems with similar features to benefit the gaming public, in addition to what is already happening in most famous online portals.

If among our readers there is anyone who tries Double Jackpot Blazing 7s With Quick Hit (High Limit Edition) slot machine, please let us know the impressions: we would be curious to know the opinions about this very special game.


Online Slots | Best FREE Slot Games

Copyright ©2024 www.spikeslotcanada.com

DMCA SPIKESlotCanada.com