Page 12 - April 2014 • Southern California Gaming Guide

When You Win a Big Jackpot...
by Gail Anders
Frankie, my casino buddy, loves to tell her “Big Win” story. ere she was at a well-known Southern California casino, playing one of her favorite progressive slots. It was a game with a top jackpot that accrues over time to a pretty large payout that started at $200,000. She was enjoying her play, she says, with no expectation other than being happy to have some small wins to keep her play going.
en, BAM! She was the winner of a $460,000-plus top jackpot!
two forms of identi cation and give your Social Security Number, current address, and phone number so you can be reached later. In most cases, slot companies do not withhold state or federal taxes, (unless you are not U.S. resident) but they will ll out a W-2G form reporting your winnings that you must sign and which will be led with the IRS. e paperwork usually takes less than an hour
“It all happened so fast,” she recounts, “I didn’t know what was going on at rst, until a message came across the slot screen that said ‘Attendant Hand Pay,’ so I knew I’d won something big. But I couldn’t believe it when I found out how much. ere were no bells, no sounds at all, but somehow the casino attendants knew I had won.”
Immediately, she was surrounded by other casino players asking how much she’d won. e casino sta approached and the casino manager told her that it appeared she had won the top jackpot and veri cation of the win had to take place by the slot company. She was invited to a VIP lounge in the casino, while the slot machine was put out of service and the veri cation took place. In the VIP lounge, she says,
“I was treated fantastically; o ered a hotel suite and food— really, anything I wanted. But what I really wanted was to sit quietly and not have to decide anything. I was so excited that I was numb.”
Verifying the Win
Imagine how you would feel.You’re playing a progressive slot, you’ve played the maximum bet, you push the spin button ... and click, click, click ... the winning symbols line up on the payline. According to many reports from previous winners, like Frankie, time seems to stand still as you slowly realize that ... yes, you’ve won. You’ve really won!
Meanwhile, slot manufacturers who lease wide-area progressive games like Wheel of Fortune® or The Walking Dead Slot GameTM to casinos are alerted by their extensive computer systems that a top jackpot has been won, no matter where in the country, whether it’s
in San Diego at an Indian casino or in Las Vegas at the MGM Grand. Computers monitor wide- area progressive slot machines scattered throughout the United States, and an advisory tells a 24-hour monitoring sta which game has won, as well as the exact time, location and amount of the jackpot.
Back in Southern California (or wherever the winner is), casino sta is nding it hard to resist the impulse to
o er congratulations. While all outward signs indicate that you have won a signi cant amount of money, your win is not yet “o cial” and congratulations not yet in order. Gaming regulations require a veri cation process whereby a slot company’s technicians thoroughly inspect the machine’s internal systems to insure that the machine is working properly and the jackpot is legitimate.
e slot company’s operations sta calls technicians who arrive shortly to inspect your machine.
“Gaming regulations require a verification process whereby a slot company’s technicians thoroughly inspect
the machine’s internal systems to insure that the machine is working properly and the jackpot is legitimate.”
and then, you have a major decision: how to receive payment.
Payment Decisions
Most slot companies give winners two ways to receive their money: a lifetime payout or a lump sum. e choice you make could have important tax implications. In a lifetime payout—if the jackpot is paid as an annuity— you will receive a set annual amount for a certain number of years. If you choose this option, within 24 hours of hitting a jackpot, winners will usually receive one-twentieth of their money wired to their bank account.
ey also notify a jackpot response
representative who, once your
jackpot is o cial, will present you with various documents to sign.
Winners may have 60 to 90 days to decide whether they want a lump sum or lifetime payment. If you opt for a lump sum, you’ll have to deal with a hefty
interest rate that may leave you with 60 percent of your jackpot. Yes, you still have to pay the government.
Uncle Sam’s Cut
Most casino players know that any jackpot or casino winnings of $1,200 or more requires a W-2G form to be signed by the winner. If you win $5,000 or more, the IRS will consider your winnings part of your income, which could raise you to a higher tax bracket. If you hit it really
big, expect to pay up to 40 percent in income taxes.
“But, who could complain?” Frankie told me.
“Winning my jackpot was one of the most exciting things that’s happened to me. I was thrilled to pay taxes. I considered it a little rain in a sunshine downpour. And
after that came the fun part: living the rest of my life as a lucky big jackpot winner. It sure gives me a chance
to tell a good story.”
Gail Anders writes for magazines and online journals and lives in Laguna Beach and New York.
Paperwork
Once your jackpot is veri ed, sometimes taking a few hours, congratulations are in order, and completing the paperwork is ready to begin. You will be asked to present
PAGE 12
SOUTHERN CALIFORNIA GAMING GUIDE
APRIL 2014