I am contemplating spending some time in vegas through the NFL season. But im starting to think tax laws would make applying my gambling strategy near impossible.

Do foreign punters lose 30% of their winnings from every ticket in withholding tax and then have to wait until tax time to get a refund?


if thats the case and you are a break even gambler who wagers $1000 daily on even money bets. on average you would have 180ish winners and 180ish losers over the course of a year. You would have 30% of each win withheld. Thats $54000 withheld over a year, pretty much doubling the size of the required bankroll.

Am I understanding withholding tax for foreigners correctly? a foreigner in vegas would expect (whilst using responsible bankroll management) to earn only half what an american would betting over a year.

Anyone have any idea on the general betting limits allowed (things like NBA totals, NFL lines)?
Anyone familiar with the type of NFL\NBA prop bets offered and what betting limits apply?
Anyone know how the books in vegas deal with sharp punters?

Taxes only come into play under certain circumstances its not automatic on every winning wager.

An ITIN may be all I need to sort out tax issues.

Can I walk down the strip betting $2k per book on nfl player perf props or bet $5k per book on nba game total lines?

Actually i've wanted to ask a similar question for a while, is it the same as the rules for poker in that only bets that yield 5k+ in profit on a single transaction require tax forms etc and for smaller wins you just get paid out in cash or is it different? What's the threshold for where they just pay you cash vs needing to deal with forms etc?

Taxes on gambling winnings
There are some things you should know if you are lucky enough to win. The Internal Revenue Service (IRS) requires all casinos in certain instances to withhold federal taxes if you win over a certain amount. The percentage withheld ranges between 25 and 30 percent depending on how you won. Here is how it works.

If you had gambling winnings, the casino is required by the IRS Information Reporting rules to withhold 28% as income tax if you do not provide a documented TIN (Taxpayer Identification Number, that is, your Social Security Number.) We have heard of cases where it is withheld no matter what. The withholding tax is 30% if a foreign gambler. The tax rate is 25 percent if the amount is over $5,000 (except for non-resident aliens.)


IRS Form W-2G
When your winnings exceed a specified threshold and/or tax is withheld, the casino will give you an IRS Form W-2G showing the amount you won and the amount of tax withheld. Report (and take credit for the tax you paid) on your IRS Form 1040 tax return at the end of the year. (Only use Form 1040 if you had gambling winnings; you cannot use any other form.)

Generally, gambling winnings are reportable to the IRS if the amount paid is (a) $600 or more and (b) at least 300 times the amount of the wager. This requirement primarily applies to lotteries, sweepstakes and other big winnings from small bets. It does not apply to winnings from bingo, keno, and slot machines.

Casinos report gambling winnings for these games to the IRS when a player wins $1,200 or more from a bingo game or slot machine or if the proceeds are $1,500 or more from a keno game. When you exceed these amounts, the casino may withhold taxes and will provide you with IRS Form W-2G. They keep the original and give you two copies of the form. (If state income tax withholding is required on gambling winnings in your state, additional taxes may be withheld.)

The rules are different for table games (such as blackjack, baccarat, craps, roulette or other spinning wheel games.) Since Nevada casinos do not know the amount you started with, they are not able to determine how much you won (...your taxable gain.) As a result, federal law provides that there is no withholding or even reporting of table game wins to the IRS. It therefore follows that table game winners probably do not report their gambling profits to the IRS.

You not only pay taxes on gambling profits, but you can also claim gambling losses as an itemized deduction as well. But you must keep some kind of documentation (such as a diary or tickets) to substantiate the amount and nature of the losses. In any event, you cannot claim gambling losses that exceed your winnings.


https://www.lasvegas4newbies.com/chap10-1.html

Poker tournaments and sports are not the same in this in regard. W2-Gs for sports and parimutuel = 300-1 and $10k+ (both conditions must apply)

Your $20k NFL spread wager will not earn you a W2-G. The only paperwork is a CTR.

From https://www.irs.gov/taxtopics/tc419.html


Topic 419 - Gambling Income and Losses

The following rules apply to casual gamblers who aren't in the trade or business of gambling. Gambling winnings are fully taxable and you must report the income on your tax return. Gambling income includes but isn't limited to winnings from lotteries, raffles, horse races, and casinos. It includes cash winnings and the fair market value of prizes, such as cars and trips. For additional information, refer to Publication 525, Taxable and Nontaxable Income, or review How Do I Claim My Gambling Winnings and/or Losses?
Gambling Winnings

A payer is required to issue you a Form W-2G (PDF), Certain Gambling Winnings, if you receive certain gambling winnings or have any gambling winnings subject to federal income tax withholding. You must report all gambling winnings on your Form 1040 (PDF) as "Other Income" (line 21), including winnings that aren't reported on a Form W-2G (PDF). When you have gambling winnings, you may be required to pay an estimated tax on that additional income. For information on withholding on gambling winnings, refer to Publication 505, Tax Withholding and Estimated Tax.
Gambling Losses

You may deduct gambling losses only if you itemize your deductions on Form 1040, Schedule A (PDF), and kept a record of your winnings and losses. The amount of losses you deduct can't be more than the amount of gambling income you reported on your return. Claim your gambling losses up to the amount of winnings, as an "Other Miscellaneous Deduction" (line 28) that's not subject to the 2% limit.

Nonresident Aliens

If you're a nonresident alien of the United States for income tax purposes and you have to file a tax return for U.S. source gambling winnings, you must use Form 1040NR (PDF), U.S. Nonresident Alien Income Tax Return. Refer to Publication 519, U.S. Tax Guide for Aliens, and Publication 901, U.S. Tax Treaties, for more information. Also, nonresident aliens of the United States can't deduct gambling losses.

Recordkeeping

To deduct your losses, you must keep an accurate diary or similar record of your gambling winnings and losses and be able to provide receipts, tickets, statements, or other records that show the amount of both your winnings and losses. Refer to Publication 529, Miscellaneous Deductions, for more information.

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Page Last Reviewed or Updated: May 01, 2017