Blackjack Tournaments

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Tax for Winnings

Many casino gamers know all about the huge prizes that can be won in casino tournaments, including blackjack tournaments. However, something that is not common knowledge is the fact that you may have to pay taxes on your blackjack tournament winnings.

That's right! If you win a blackjack tournament you are required to let the IRS know. Either the casino where the tournament is held will take the tax out of the winnings or you must declare the winnings and pay directly to the IRS, or the tax office in your country. In the United States, tournament tax is usually around 30% of your winnings. If you live outside of the United States then the tax laws in your country will determine the tax on your winnings.

Many live and online casinos are also required to submit information about their tournament winners and the amount of their winnings to the government. Therefore, if you don't pay the taxes on your winnings it is likely that the IRS will come to you requesting that you pay the tax. The IRS considers tournament winnings as ¡°income¡± and just as you pay income tax on the money you earn from working you must pay a tax on your tournament winnings as well.

It is a good idea to look into the tax laws before you enter a tournament so you won't be surprised when your big $10,000 win turns out to be only $7,000.