Blackjack Side Bet - W2G - Tax

[Raybabyray]

Hi,

While I was working on a blackjack side bet, my wife reminded me that there could be tax issues and I should consider that in my EV. I did some research and found following website very informative:
https://www.blackjackinfo.com/online...ine-blackjack/

So question: For a blackjack side bet, we have to meet both following requirements to get a W2G, is my understanding correct?
A.) They are $600, or more, dollars after the amount of the wager has been offset from the total win.
B.) The result of the pay is at least 300x the amount originally wagered.

Also, I am not quite sure if I understand (A) requirement correctly. I bet X=$5, and I won $600. The total amount I get back is Y=$605. "after the amount of the wager has been offset from the total win" means if Y-X>=$600, I have to pay tax on the amount of (Y-X). Is my understanding correct?

Any input is appreciated. Thanks!

Regards,
Raybabyray

[21forme]

You're supposed to pay tax on all your winnings. You won $600, so that is your income on that wager, which can be offset by losses.

That said, the transaction you give as an example won't generate a W2G because condition B wasn't met. Winning $600 on a $5 bet is 120x, less than 300x. Both conditions need to be met to generate a tax form.

[Raybabyray]

You're supposed to pay tax on all your winnings. You won $600, so that is your income on that wager, which can be offset by losses.

That said, the transaction you give as an example won't generate a W2G because condition B wasn't met. Winning $600 on a $5 bet is 120x, less than 300x. Both conditions need to be met to generate a tax form.

Hi @21forme,

This is very helpful. Thanks a lot.

Regards,
Ray