How Do Casinos Pay Out Large Sums Of Money?
So, all the hours you put into your slot and table game strategy have finally paid off. Congratulations on winning to the point where you can make a sizable withdrawal. But your winnings might be substantial, depending on your game. Maybe you won a massive progressive jackpot or a poker tournament. So, how exactly do casinos pay you all that cash? Keep reading to find out.
How Casinos Deliver Large Winnings
The first thing to consider in this regard is the state that you live in. This is key because different states have various ways of handling this feature. Online casinos follow a similar method.
If your winnings are under $25,000, most online casinos can receive a paper check for you to cash in the winnings. But, typically speaking, most online casinos have a limit on how much you can receive at one time or during the month. That way, super-large winnings might have to be withdrawn over many months.
But you can also opt for the annuity payment. Similar to the lottery system, the annuity pays a fixed amount over a specific period. Many online casinos give you 90 days to determine how you want to receive the payment.
Regardless of your chosen method, casino winnings are taxable on the federal level. And depending on where you live also on the state and municipal level. And if you choose the installment option, you can receive payments for up to thirty years, depending on the size of your amount.
However, depending on if you broke the threshold for reporting wins, tax institutions like the IRS will levy 25% off the top. To begin the payment process, you proceed to the withdrawal section like normal. But due to the size of your winnings, the online casino in question might ask for further verification to ensure that you are the actual winner.
Also, remember that each online casino has different payment limits too. One way to help this along is by having a high-ranking VIP level. The greater your VIP level, the higher your chances of expediting larger payments. Generally speaking, winnings under $600 don't have to be reported.