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If you are a recurring player at casinos and bookmakers, you may not know exactly whether you need to declare or pay taxes on your winnings made on the platforms. For example, do you know if you need to, at Stake.us pay tax on winnings? And at Chumba casino pay tax on winnings?
In our article, we’ll try to clarify the main questions about this topic, which may not be clear to many players. There are many details, often written in confusing language, which require knowledge of other areas. But keep reading if you wanna learn if at luckyland slots pay tax on winnings or other casinos and more, seeing we’ll aim to simplify the process so that you stay on top of everything plus take advantage of a $25 No Deposit + 250,000 Gold Coins + 5% Rakeback by using our exclusive promo code MIKBONUS.
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What type of winnings are eligible for taxation?
Basically, any game you try, be it of any kind, such as slot games, roulette and other game categories, must have your winnings reported to the IRS, even if you had some kind of loss during your gaming experience. So, if you’re wondering if you have to, at Stake.us, pay tax on winnings, the answer is yes. It is also the same for other casinos and social casinos. Consequently, you need to, at Wow Vegas, pay tax on winnings. Also, you’ll have to, at Sweeptastic and High 5 Casino, pay tax on your winnings.
It is important that you record information about your activities involving profit and loss, such as:
- Dates and types of bets
- Values gained and lost
- The establishments where you played
- Game partners
In addition, it is ideal that you keep records of banking and financial transactions, referring to your activities involving winnings and losses on online gaming and betting platforms. Remember that, regardless of the destination you give to your winnings, you are responsible for paying fees and taxes.
What about winnings from sweepstakes, lotteries and prizes?
All winnings obtained in sweepstakes or gift cards must also be declared to the IRS, as the agency considers them as forms of income. As stated earlier, sweepstakes are also considered real profit. So, even at social casinos, you’ll have to pay taxes on your winnings.
And what if I gift people my winnings — Do they also pay?
It is important to make it clear that, in the case of being gifted or gifting someone with winnings obtained in games, or lottery, the person who decides to give the gift is the one who pays the fees. However, there can be a common agreement where both pay.
It is also worth noting that the IRS also does not consider inheritance a taxable income. Therefore, if you inherited wealth from games and sweepstakes, this is not seen as taxable income.
Can I deduct my gaming losses?
It is possible that you will be able to deduct your gaming losses in tax, but to achieve this, you will need to report all the money you won as taxable income on your tax return.
Therefore, you will need to keep a detailed record of your winnings and losses. As much as you consider offsetting your winnings on one day against your losses on another and vice versa, it is necessary to keep a separate record dedicated to losses and winnings.
The best free sweepstakes casinos
Now that you understand how the IRS views your taxable income, let’s talk a little bit about the best sweepstakes casinos available nowadays. Some of the best examples are Stake.us, Wow Vegas, Sweeptastic and High 5 Casino. Check below and learn more about these operators, understanding the highlights of each one, as well as any possible negative aspects. We will also talk about why the winnings on the sites are considered eligible to be taxed, since we are reviewing social casinos.
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The best sweepstakes casino site: Stake.us
Surely you must have heard about Stake.us, considered by many to be the best sweepstakes site available on the market. But a question that should be on your mind is “Why is Stake.us the best?”. In case you still do not know the platform and all of its incredible fame among players and bettors, let’s understand this better.
The platform does not skimp when it comes to rewarding its players, and as our treat to you, we have an exclusive offer of $25 No Deposit + 250,000 Gold Coins + 5% Rakeback’ by using the code ‘MIKBONUS’.
Another is the “Weekly Stake Raffle”, this is one of the most generous promotions in the business, providing its users with a chance to take a share of 1000 million GC every week. The raffle also provides a free share of 25k SC, all you need to do is play 1000 SC to get your hands on a ticket to the weekly raffle. Every 1,000 SC you play leads to a ticket and you can attain as many tickets as possible. The only requirement to this competition is to have an account in good standing with the company, hold one or more raffle tickets and check in after the draw which takes place every Saturday at 10:00 am EDT.
Pros:
- Weekly prize pool of $75k
- Sweepstakes carried out live, in a transparent way
- Prize divided among a few participants, guaranteeing a great share
- Casino and sports bets count towards the sweepstakes
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Wow Vegas: Pay tax on winnings?
If you like to play just for fun, perhaps Wow Vegas is the ideal destination for your player profile. With a portfolio of slot games rarely seen on the market, Wow Vegas is undoubtedly an interesting option.
But what makes Wow Vegas one of the best social casinos is the fact that you can play a lot, without spending a penny on it. Through the daily login rewards, and the social media bonus, you can get Gold Coins, which are the way to enjoy the games available on the platform. The house has more than 350 slot options, which will certainly guarantee you a lot of fun.
However, if you were in doubt whether it is necessary to, at Wow Vegas, pay tax on winnings, we must inform you that it is – the answer is a yes. After all, if you decide to exchange your Sweeps Coins earned in promotional games for prizes and money, know that the IRS considers such gains as taxable income. Therefore, you will need to record all your activity involving this type of operation, so that your experience in Wow Vegas is as smooth as possible, and you’ll not be lost in your own records.
Pros:
- Possibility to play without spending real money
- Great slots portfolio
- Daily Gold Coins rewards
- Very affordable packages
Sweeptastic: Guaranteed fun
Sweeptastic is a renowned social casino, considered one of the most relevant and respected options on the market, setting up side by side with the previously mentioned brand names. With a wide variety of sweepstakes games, luck will certainly be your main ally, alongside fun in your experience at home. But what makes Sweeptastic so special? In case you didn’t already know, let’s talk more about it.
At Sweeptastic, similar to other social casinos, you can play most of the house titles without having to spend money. All the player needs to do is to maintain regularity in daily logins, playing and trying out different titles, conduct that is usually well rewarded by social casinos. At Sweeptastic, you can also get cash prizes, which consist of exchanging Sweeps Coins for real currency values.
Consequently, it is clear that the player needs to, at Sweeptastic, pay taxes on winnings since cash prizes are taxable income, according to the IRS. But this doesn’t stop you from having fun and enjoying all the titles that the platform makes available to you.
Pros:
- Great offer of slots games
- Fully optimized for mobile devices
- Good selection of payment methods
- Retro look
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High 5 Casino: Best place for slots
High 5 casino is one of the social casinos that is the longest on the market. It has opened its doors in 2012. It is one of the best sweeps casinos if you enjoy playing slots. They even develop some original slots in-house. But if the slots aren’t your jam, there is a limited selection of table and live dealer games.
The thing that sets apart this social casino from the rest is its generous bonuses and amazing loyalty program. As you play games, you will collect loyalty program points called Diamonds. You can use those to boost your games and get more Sweeps Coins, which can be redeemed for cash prizes.
At High 5 Casino, like the social casinos we have already mentioned, you can play games for free. But there is a possibility to get some Sweeps Coins that are redeemable. If you decide to cash out, you must report your winnings to the IRS. This is a taxable event.
Pros:
- Generous welcome bonus
- Over 800 slots
- User-friendly site
- Possibility of playing games for free
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Summary — Get informed and avoid unpleasant surprises
Playing, betting and making good winnings is all a player wants. Despite being very rewarding, you must remember to correctly follow the guidelines and determinations established by the IRS.
Remember that even your lottery winnings, or bonuses, must be reported to the federal agency. In addition, even betting experiences involving losses, regardless of the amount, must be reported. That said, it is useful for you to keep a diary with complete records of all your casino and bookmaker related activities – all the winnings, and all the losses.
By following these tips, you will certainly have a pleasant, safe and fright-free experience. Knowing all this, you are ready to have fun on the best online platforms, in a healthy and conscious way.
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Pay tax on winnings frequently asked questions
Do I need to pay tax on winnings at Stake.us?
This is undoubtedly a legitimate concern, after all, taxes and fees are issues that cause discomfort in almost everyone. If you want to understand how the tax policy works on your Stake.us winnings, read our specific article on the subject.
💸Does Wow Vegas allow real money winnings?
Social casinos tend to be more dedicated to fun than to real money winnings from games and betting. If you want to know about the possibilities to win money at Wow Vegas, read our full review and stay on top of everything.
🆓Can I play without spending real money at High 5 Casino?
If you would like to know if High 5 Casino offers ways to play without spending money, read our operator review. There, you’ll know everything and make your decisions in an informed way.
🧐And if I win in a sweepstakes, do I also pay tax on winnings?
This is a question that leaves many people in doubt. Even experts disagree on this, and if you really want to understand how the IRS deals with this, read our review and find out how you should proceed.