Picture it, you’re at a land-based casino. Your buddies invited you to join them after work to de-stress and have some fun. You’ve been there for an hour or two, and you know you’ll have to head home soon but you return to the slot machines for one last game. You didn’t expect the visit to give you much more than a bit of fun but, as you watch the reels spin, somehow the stars align. You rub your eyes in disbelief, but the truth stares back at you. You’ve won the jackpot, your life is to be changed forever, but what now?

Let’s take a look at what happens when you win the jackpot in both land-based and online casinos.

Verification

In both land-based and online casinos, if you win big, someone will need to verify the win. At a traditional casino, you can expect the casino’s managerial staff to rush over, make sure the machine is working properly, and check your ID. If checking the machine sounds like a formality, unfortunately, this is not the case. Slot machines especially are known to malfunction and suggest jackpot wins when one hasn’t actually been hit, this is why all machines display disclaimer messages stating ‘malfunction voids all bets and play.’ Try to contain your excitement until a real person has assured you of your win. 

In an online casino, things work in a similar way. Just like their land-based counterparts, online casinos offer all the traditional and much-loved games, but many come with additional benefits. Many online casinos enable you to wager in withdraw winnings in cryptocurrency, and some are even compatible with a VPN (virtual private network) which provides additional layers of security that can enhance your experience. If you win the jackpot on one of these sites, the win will be verified through the software provider or the game developer. Once this is done, you will likely be asked to verify your own identity by uploading a picture of your ID and proof of address.

Smaller winnings

If you’re playing at a land-based casino, expect winnings under $5000 to be handed to you in cash. Sometimes, even bigger winnings may be given to you there and then in hand. This is because casinos hope that if you have the money on you, you might use some of it to keep playing. If carrying that amount of money makes you nervous, the casino’s security team will be more than happy to escort you to your car.

Usually, however, winnings over $5000 will be given to you in the form of a check. This is because of both the security issues of allowing you to leave with such large amounts of money, and also the cash flow of the casino itself.

In online casinos, both small and large payouts will be provided to you in whichever form of payment you prefer. Whether it be bank transfer, cryptocurrency, Ewallet, or several other compatible payment types.

Larger winnings

If you win a prize in the millions in a land-based casino, things can work a little differently. The casino may offer you options on how to take your winnings. They can provide a lump sum or annual installments. You might find them encouraging the latter option, and as frustrating as it may seem, it may be a good idea to listen. This is because of the tax implications on these kinds of wins, which we’ll explore next.

Tax

Any win over $1200 is subject to tax in the US, and this applies to both traditional and online casinos. If you won at a land-based casino, expect to be handed a W-2G form before you see a cent of your win. However, there is a benefit to casino gaming that many people don’t know about. In some US states, you can deduct the money that you have spent at that casino from the tax you are required to pay. This is why it’s always a good idea to keep an up-to-date record of your wins and losses for every casino you visit. 

As mentioned before, taking a big win in one lump sum will likely see you paying significantly more tax than accepting the payment in installments. Remember, it is in your right to discuss your options with an accountant before making your decision. In fact, casinos will give you 90 days to decide, so there is no need to rush into anything you might later regret.

If you are not a US citizen, this tax will not apply. However, you may find that the casino deducts it automatically. If this is the case, you can claim back the money but expect to be waiting a while before you see it returned to you.

An Agonizing Wait

Although sometimes casinos will have the means to pay you right away, often it is not so easy. In both land-based and online casinos, game developers usually have to be contacted to then release the money to the casino itself. This can take time. Have patience and rest assured that you will be getting paid.

Some Time in the Limelight

Winning a massive jackpot at the casino doesn’t happen every day. If you are lucky enough to get your hands on a life-changing amount of money, the casino is likely going to want to boast about it. Of course, it is entirely up to you how much you want to be involved in the marketing of these businesses. But if you are up for it, expect to be interviewed and photographed holding giant checks. Enjoy it, your win is worth celebrating.

A Whole New Life

Once all that is done, the money is in your account and the tax sorted, it is yours to spend. Congratulations! It is always recommended that after winning big you approach an accountant or financial advisor to help you manage your money and make the smartest next steps. Now, aren’t you glad you agreed to visit the casino that night after work with your pals?