Staying in the safe zone: Useful words of caution and advice on managing casino bankrolls
Everyone dreams of winning a sizeable amount at casinos at least once in their lifetime. Objects in our daily life that seem unattainable such as the endless list of high-end fashion labels, footwear brands, and even tech gadgets that we aspire to own make the dream of such winnings more appealing. Yet, even for the most prolific and seasoned casino entrant, there are rules and regulations that they must adhere to, in order to safeguard their prized winnings.
Gambling winnings are taxable!
As a form of income, gambling winnings are subject to tax by the Internal Revenue Service (IRS). Lucky casino players are obliged to submit a copy of Form W-2G (entitled “Certain Gambling Winnings”) to the IRS. There is, however, a catch in reporting such winnings: if the player wins at least $1,200 from slots or $5,000 from Texas hold’em, he/she must reveal their social security number to the gambling establishment they are playing at, who will then withhold 25 percent of federal tax from the total pay-out. An additional 3 percent tax should deter casino earners to shortchange the IRS with their SS number.
Not all prizes though are for represented in the form of cash. Holiday trips to Rome and Paris, for instance, are regularly given away by Castle Jackpot and BingoGodz developer Gaming Realms. These non-cash winnings are also subject to tax up to their fair market value, or the amount the prize would sell for on the market.
‘What goes up must come down’
Uncle Sam’s imposition of heavy gambling taxes should already warn the avid casino player to manage their bankroll before they run out of money. Casino winnings could also wither away from unwise and uncontrolled spending. Sometimes, it’s better not to go all out when the player cannot afford the risks at hand. As a timeless adage goes, “What goes up must come down.”
Controlling one’s bankroll in a place like a casino is no easy feat, but the following tips should help gambling aficionados to stay in the safe zone.
- Set a reasonable budget for waging bets, and never pull your ATM and credit cards out of your pockets.
- Limit your gaming time to help you spend less and relax more, especially for mind games like poker and blackjack.
- Remember to gamble only on something that you can afford to lose, and never borrow money.
*image from Photobucket*
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