![\"tax](\"\/wp-content\/uploads\/2017\/11\/tax-form-filled-with-gambling-winnings.jpg\")
<\/a>Within the United States, gambling winnings are generally subject to a flat tax of 25% according to federal law. However, this percentage can vary based on the amount won. Also, any winnings of the following type of over $5,000 are subject to income tax: sweepstakes, lotteries and wagering pools (including poker tournaments). This figure also includes non-cash prizes, such as trips or automobiles. They are subject to taxation based on their fair market value.<\/p>\nGambling losses\u00a0are\u00a0tax\u00a0deductible, but only to the extent of your winnings, and must be included in a summary of total amounts wagered in order for the deduction to apply. This means you need to keep a record of your winnings and losses if you hope to deduct your losses up to the amount of your gambling winnings. If you plan on playing the IRS\u2019s game, it is highly recommended that you keep a diary that includes:<\/p>\n
- \n
- date and type of gambling<\/li>\n
- name and address of the place you gambled<\/li>\n
- the amount you win and lose<\/li>\n<\/ul>\n
As well as documentation to prove your losses including:<\/p>\n
- \n
- IRS Form W-2G<\/li>\n
- IRS Form 5754<\/li>\n
- Betting tickets (lottery, race track, keno stubs, etc.)<\/li>\n
- Credit card records or cancelled checks<\/li>\n
- Casino receipts<\/li>\n<\/ul>\n
When it comes to online gambling, in certain U.S. states online gambling falls into a legal gray area. Most online casinos don\u2019t recommend that you tell your bank that your incoming cash out payments are coming from online casino winnings as the Feds still encourage U.S. backs to confiscate such payments and if you\u2019re too overt, you may leave your bank with no choice. So, please keep in mind that the above tax advice, while we did research this article well, is not professional tax advice, applies to brick and mortar casinos in the U.S. specifically and may not apply to your online gambling winnings.<\/p>\n
Professional Gambling and the Lottery<\/h3>\n
![\"lottery](\"\/wp-content\/uploads\/2017\/11\/woman-winning-the-lottery.jpg\")
<\/a>For professional gamblers, your gambling income is generally considered regular earned income, which of course is taxed per the normal taxation rate. This must be reported by the individual marked as \u201cself-employed\u201d each year.<\/p>\nIf you win the lottery, winners are given a choice of a lump payment or winnings given in annual installments. Generally, the lump payment is taxed at a higher percentage, so it\u2019s good to look at the terms and conditions attached.<\/p>\n
Choice of payment often comes with a time limit, so it\u2019s worth considering the pros and cons of each. Consider which will save you money in the long run. It helps if you hire someone who can calculate the numbers to find which payment is best suited for you because lump payments can encourage careless spending.<\/p>\n
In case you want to try playing the lottery, but aren\u2019t sure what numbers to choose, find out some advice on lucky numbers<\/a>!<\/p>\n
Tips for investing (big) gambling winnings<\/h3>\n
Below are important steps worth taking that will help you when winning a large sum of money, whether online or at a brick and mortar casino, via a state lottery or at the racetrack:<\/p>\n
- \n
- Hire a financial advisor <\/strong><\/li>\n<\/ol>\n
Make a plan on how to intelligently spend your money. Even if you are good with money, it is beneficial to hire a financial advisor that will guide you on how to invest your money and ensure a financial plan that guarantees the longevity of your fortune. It\u2019s easy to fall into a hole of spending (easy come, easy go, right?), so be vigilant and hire someone who has your financial security in mind.<\/p>\n
Still not in the millionaire\u2019s club yet but into managing your money wisely? Check out our 7 budgeting apps that will help you manage your casino bankroll.<\/a><\/p>\n
- \n
- Get rid of your debts<\/strong><\/li>\n<\/ol>\n
This is sort of a no brainer, but the smartest thing to do as soon as possible is to pay off any existing debts that you have accumulated over the years. These include credit card debts, mortgages and car or health payments. The sooner these are tackled, the less they will continue to collect interest. Becoming a big winner can make you a target for unscrupulous debt collectors, so getting this issue off your plate once and for all is solid good advice.<\/p>\n
- \n
- Limit big spending<\/strong><\/li>\n<\/ol>\n
![\"gambling](\"\/wp-content\/uploads\/2017\/03\/p7c-article-storiesofsupersuccess-going-broke-1.jpg\")
<\/a>Impulse buys and big spending on lavish items should be limited. There are certain investments such as property or shares and bonds that are worth it. Perhaps three sports cars and a mansion that come with outrageous insurance aren\u2019t the most sound purchases decisions. Once again, your financial advisor will be able to tell you what items are the difference between living comfortably versus excessively.<\/p>\nFor a heads up on what can go wrong if you\u2019re not careful with your newly won wealth, check out those lottery winners catastrophic failures<\/a>!<\/p>\n
- \n
- High-interest accounts<\/strong><\/li>\n<\/ol>\n
Even if you\u2019ve made it into big money, stretch your dollars and look for solutions and\/or opportunities to make more money. The right banks offer high-interest bank accounts for millionaires and are worth considering when saving. Look at the options and meet with your bankers to find the bank account most beneficial to you. These types of accounts are the simplest way to increase your wealth with hardly any effort at all.<\/p>\n
- \n
- Diversify<\/strong><\/li>\n<\/ol>\n
It\u2019s simple, and the oldest, best investment advice out there, don\u2019t put all your eggs in one basket! Imagine if you put all your gambling winnings into property before the 2008 housing bubble, when the market collapsed you would have lost all your money. The best thing to do is to distribute your earnings between mostly safe and slightly riskier investments. Investing in cryptocurrencies for instance are the latest craze, but it\u2019s worth considering limiting piling up funds into such volatile options and leaning towards investing in the S&P 500 index<\/a>.<\/p>\n
Check out our easy beginner\u2019s guide to betting on the stock market<\/a>!<\/p>\n
Crazy Purchases<\/h2>\n
Ah, the crazy things money can buy! So, we\u2019ve given you the scoop on how to best invest and retain your gambling winnings, but say you\u2019re itching to do some spending. Once you\u2019ve celebrated with family and friends, escaped on a first class getaway, and filled up on fine dining, there\u2019s only so many ways you can spend your money. Have you ever stopped to wonder what crazy purchases you could make? Look no further. In part two of our series on how to spend it when you win it, we\u2019ve got a list of some of the most outrageous things you can buy with your gambling winnings!<\/p>\n
A Bulletproof, Air-Conditioned, Diamond-Encrusted Suit<\/h3>\n
![\"diamond](\"\/wp-content\/uploads\/2017\/11\/man-wearing-a-Diamond-Encrusted-Suit.jpg\")
<\/a>If you\u2019ve decided to quit your day job, or simply want to moonlight as a vigilante spy, why not give this suit a try? The Swiss company Suitart<\/em> has developed a unique luxury suit that will set you back $3.2 million. It is made out of NATO certified bullet-proof material, comes with an interior air-conditioning system, waterproof nanotechnology, steel and black diamond-encrusted buttons, a matching watch and 24-carat golden silk tie. Even agent 007 himself will be gawking in awe. Now that you\u2019ve got a suit cooler than the world\u2019s most famous spy, why not keep up the cool factor Bond-style by learning more about the game of roulette!<\/p>\nGolden Poker Set<\/h3>\n
If you are a casino high roller looking for the ultimate poker set, we\u2019ve found one just for you. British deck game designer Geoffrey Parker has created the most expensive poker set in the world for $7.5 million. This luxury game set is sure to have other high rollers vying for a seat at your table.<\/p>\n
For starters, the case is made of alligator skin and comes with suede lining. The poker chips are 18-karat white gold and fitted with precious gemstones and two rows of diamonds. The cards themselves come in four decks and are entirely platinum-plated. Talk about gambling bling! Eager clients looking to buy this extravagant poker set can specify the denomination of chips they desire as well as the types of gem configurations in chips used for play.<\/p>\n
A unique travel experience<\/h3>\n
In case you\u2019ve ever been fed up with your average vacation or are looking for something a little more out of the ordinary, we suggest you look into a company called Blue Fish<\/em>. This company caters to high rollers and big spenders who want a more customized experience. It offers everything from VIP jet tours, underwater dives in submersibles to visit the Titanic, and entry to private Hollywood parties. Each getaway is different and based on the client\u2019s interests. Once you\u2019re a high roller, why not give it a try? Check out also Top Caribbean Gambling Destination<\/a> that would be great to visit.<\/p>\n
Rent-a-celeb<\/h3>\n
Can\u2019t be bothered to go to Hollywood for a private event? How about you have Hollywood come to you! This company Millionaire\u2019s Concierge based out of Ft. Lauderdale, Florida will contact celebrities and music superstars on your behalf that will pay a visit for the right price. Celebrities like Leonardo DiCaprio or the Olsen Twins will fly out to you, and attend a private event designed according to your choosing. Just be ready to spend in an excess of hundreds of thousands of dollars per hour<\/em> depending on who you want to visit for this once in a lifetime opportunity.<\/p>\n
An online casino\u2019s impractical purchases<\/h3>\n
There\u2019s nothing like a good PR campaign. The online casino company Golden Palace<\/em> has gone to some outrageous lengths to keep its name in the papers. They have become famous in recent years for purchasing peculiar items such as an infamous grilled cheese sandwich<\/a> with a likeness of the Virgin Mary mystically on it for a mere $28,000. Other eccentric purchases include a Dorito corn chip shaped like the Pope\u2019s hat for $1,209, and even Britney Spears\u2019 (alleged) used pregnancy test for $5,001.<\/p>\n
Hey, if these items ever happen to go up for auction, these novelties items can be yours! If you\u2019re willing to pay the price that is.<\/p>\n
Techno gadgets to gold toilet paper rolls<\/h3>\n
![\"gold](\"\/wp-content\/uploads\/2017\/11\/gold-toilet-paper-rolls.jpg\")
<\/a>Speaking of novelties, if you are perhaps looking for more useful outside of the box gift ideas, the following website is perfect for you! From levitating magnetic beds and jet packs to a single role of 24-karat gold toilet paper priced at a whopping $1.6 million, some of the most interesting splurge items are available at This is Why I\u2019m Broke. You don\u2019t have to spend all of your gambling winnings either. There are more modestly priced items such as giant gummy bears and personalized coffee mugs. We suggest you start small, maybe with a Mobile Land Fortress for $19,999.95, an $801.07 Coffee Table Aquarium or perhaps a $300 Nerf Machine Gun.<\/p>\nOut of this world real estate<\/h3>\n
Ok, so you\u2019ve bought some property, but are getting bored of the same plots of dirt here on Earth. Why not buy property on the moon? Lunar Registery offers serious bidders a chance to buy acreage on the moon. And all starting for a bargain of just $30 an acre! Even a modest win on one of our many exciting slot games will give you a chance to do that.<\/p>\n
A pricey pad<\/h3>\n
If you do hit it big or have an outrageously successful week high rolling on Planet 7, you could always look into purchasing the most expensive commercially available property on the market. Villa Leopolda<\/em>, located in the most exclusive part of the French Riviera, can be purchased for a mind-blowing $1.2 billion<\/em>. Why the outrageous price tag? The estate was once owned by King Leopold II of Belgium, has been used as a film backdrop for the likes of Alfred Hitchcock and Cary Grant, and has some stunning views overlooking the Mediterranean Sea. The house is currently on the market and is being sold by Suzanne Marnier-Lapostolle, heir to the Grand Marnier liqueur<\/em> fortune.<\/p>\n
Travel Sinatra-style<\/h3>\n
Billionaire, tech genius and inventor Elon Musk is creating a private space program for people looking for a journey that is truly out of this world. His company Space Exploration Technologies (better known as Space X) has already received a request from two undisclosed individuals looking to take a week-long trip via rocket around the moon and back in 2018. Though the amount of the deposit paid by these two soon-to-be astronauts is unknown, one can speculate that it probably cost a small fortune. In case either does not pass their mandatory health screening however, a spot will open up. So now\u2019s your chance fly to the moon Sinatra-style if you\u2019ve got the dough.<\/p>\n
Your very own mech suit<\/h3>\n
Robots are all the rage these days, and though we\u2019ve seen advances in their technology from manufacturing to the medical industry, the stuff of manga comics and movies are not far behind. The Korean company Hankook Mirae Technology<\/em> has developed a bi-pedal mech suit prototype known as Method2<\/em><\/a>. This 13 foot high, 1.6 ton mech suit is the first of its kind in the world. Though it\u2019s still in development, eager buyers are already lining up to get their hands on one. Set your savings aside if you plan to buy it as it will come at an estimated cost in excess of millions of dollars. There\u2019s no doubt that it would be a lot of fun at birthday parties, shooing away pesky neighborhood kids or perfect for a future dystopian robo-battle!<\/p>\n
World\u2019s most expensive foods<\/h3>\n
Not interested in the potentials of technology? Why not try some more down-right expensive delicacies for your taste buds. From golden cannoli\u2019s to the world\u2019s most expensive caviar there seems to be no limit to the types of way to indulge: from the $666 Douche Burger at 666 Burger in New York, to $26,000 golden cannoli at Jasper\u2019s in Kansas City, Missouri, $34,700 chocolate pudding at the Lindeth Howe Country House Hotel in Kendal, UK, to $41,000 Tubillardine whiskey from the Tubillardine Distillery in Scotland, the options to splurge in the extreme are seemingly endless.<\/p>\n
Conclusion<\/h3>\n
- Diversify<\/strong><\/li>\n<\/ol>\n
- High-interest accounts<\/strong><\/li>\n<\/ol>\n
- Limit big spending<\/strong><\/li>\n<\/ol>\n
- Get rid of your debts<\/strong><\/li>\n<\/ol>\n
- Hire a financial advisor <\/strong><\/li>\n<\/ol>\n