What Happens When You Win a Really Big Sum of Money at a Casino?

What do people go to the casino and even to an online casino for? Winnings. While a good night out at a casino promises to thrill, adventure, and fun, it also offers something much more tangible in the form of cash. You can win money from the various casino games on offer, from slot machines and jackpot slots to table games of blackjack, baccarat, or poker - granted that the payout amount will vary from game to game. However, one thing that winners forget when they sweep up their gambling winnings is the legal requirements for them as taxpayers. Gambling winnings get taxed in various countries - particularly large sums of money, like $1 million. 

Heavy winnings in millions or thousands aren't all that common. But as a gambler, you should remember that you have to fill out some paperwork with the government for you to be able to keep the winnings legally. So, if you dream of winning big at the casino, read on to learn what you should do in the aftermath. This article will share what happens at first when you win the money. Then, we will get into the technicalities like basic regulations across countries, basic information about filing tax forms, and other questions about legal proceedings. 

What Happens First 

You're having a go at the slot machine, and suddenly, everything lines up. You've cranked out a winning combination, and the alarms go off, building excitement and drawing attention to you. Some people might even flock to you to figure out how big of a jackpot you've won. Stay there, as one of the casino managers or staff will be making their way to you. This is because when a machine hits a win, a signal is sent back to the monitoring room, and an attendant must verify the win by doing several checks. They also want to make sure that the machine hasn't malfunctioned. If this happens, you're out of luck and will be compensated by the casino with a prize or other perks. Don't expect something too crazy like a car or a house; it's more likely to be something small like a steak dinner.

Someone from the management will ask to see your ID. Normally, you must show identification to play in the first place, but when you win, they may ask to see it again. This is why it is important to bring some form of identification, like your ID card or driver's licence, to the casino when you want to play. You won't see a cent of your money unless you show a valid ID. This rule also applies to non-resident aliens - they can win jackpots, but they will be taxed differently from US residents. If you do not have any ID on hand, the casino will keep the money safe until you can procure the documents. If you have identification, the casino might just hand over the money to you. Some casinos pride themselves on quick hand pay - giving you money immediately. The casino will get a security team member to take you to your car, but you are on your own after they have done their bit. They prefer to pay cash because that is in the casino's best interest, as it increases the chances that you will continue playing at the casino. However, if you win more than $5000 or €4800, you might receive a check from the casino. 

In some cases, state law can make the process a little complicated. Before the casino gives you anything, they will verify that you're not on the state's exclusion list. If you are, you will not be getting any money because if the casino gives you money, you will get fined. This law is designed to check addicted players and prevent them from relapsing. 

You will receive the full amount of money because, normally, the state doesn't require the casino to subtract the withholding taxes from the wins, but you can ask the state to do so, and they are more than willing to help. On the other hand, if you win over a million dollars, there are different ways a casino can pay you. You are more likely to get paid in instalments. The casino might offer you various payment options for how you want to receive your money. Most casinos, however, offer a lump sum payment, while others will try to get you on the annual payment option. This might seem like a disadvantage, but staggered payments offer the benefits of fewer taxes. Lump sum payments get taxed as ordinary income. 

This is why gamblers should take a beat before making crucial decisions. We realise that the excitement can cause you to throw caution to the wind, but take your time to decide how you want your payments to be made, because it is an important matter. You do not want to shoot yourself in the foot because you can't see reason and want immediate control over your money. If you choose to claim a lump sum, you will pay a heftier tax bill than compared to staggered, yearly payments. 

With a lump sum, you might be able to address financial emergencies like medical expenses or college tuition, but if you don't have such an emergency, you might end up spending money on things that you don't need. An annuity is a smart choice because you can manage your money much more easily. Structured payments will provide a controlled income stream over a longer time, and you can be smart with it. If you score a big win, do not leave things to chance and contact your accountant or someone trained in tax law before making a decision. Normally, the casino will give you three months to choose an option. 

During this time, the casino will likely make you part of its marketing campaign, plunging you into the centre of attention of the media and the world. For example, you will probably be giving interviews and sharing your experience and story with TV anchors on the news, and you might be invited to casino work events. You might also garner quite a following on social media. You do not have to participate in the campaign, photo ops, or interviews if you don't want to. You might even choose to remain anonymous. Take a beat and figure out what you want, although most winners get swept up in the excitement and are more than happy to share their happiness with the media.

The Aftermath 

If you are cleared and have received your money, you can go back to playing games at the casino. But the casino will keep a close eye on you. The staff and management will intensely monitor you. They will keep track of your comings and goings.