We didn’t know handpays even existed three months ago, but here’s what we’ve learned after winning seven of them.
What Is A Handpay?
A handpay is a large win that can’t be paid by a slot machine and instead requires an attendant to make the payment and—if it’s from a slot machine win—provide a W-2G form. Handpays are reported to the IRS by the casino and are taxable.
What You Need to Have With You
- A valid government ID (usually a driver’s license)
- A social security number
- A mailing address
The casino has to report any win of $1,200 or more to the US government using a W-2G form. This money is counted as income and is taxable. For complete information, visit the IRS website for detailed information about Gambling Winnings.
Once you win a handpay on a slot machine, subsequent handpays will take less time to process. For our first handpay, we had to wait for about 15 minutes while the attendant processed our paperwork. For subsequent handpays, it took just a few minutes.
Some slots now allow for “fast pay” or other system whereby a human isn’t required to pay a large win, these aren’t always available and may require you to register for the service every day.
Handpays Have Strings
Handpays are awesome, but come with strings
Our first handpay was a turning point. It changed how we gamble. However, now that we have several under our belt, we actually prefer to win LESS than $1,200 in certain circumstances.
If you itemize your taxes, you’re in better shape
If you have expenses directly related to your gambling winnings, you can deduct them on your federal taxes. If you don’t itemize your taxes, it makes more sense NOT to chase a handpay because gambling winnings will be considered ordinary income. More income means potentially paying more in tax or even being moved to a higher tax bracket.
Small wins for the same amount offer benefits
Companies that sell cheap goods can still turn an enormous profit (see “The Dollar Store”). However, a lot of people have been brainwashed by slot influencers into thinking that small wins are for losers. Nothing could be farther from the truth.
Small wins are the basis of our slot method. Small wins quickly add up to profit, which is why we like to compare them to stock gains. A one-day 30% gain on the stock market is rare, but it’s quite common on a slot machine. If you remember to appreciate a small win, you’re on your way to profit.