They did what they are required to do.
I recently had a SIDE BET play on craps that paid $5,000 and was required to sign for a w2-G. And no they are not required to withhold taxes although smoe may offer the ability if you desire. I have won more than 5K multiple times at craps and never been given a w2g. It has to be on payoff on one bet.
Stealth
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