Taxes On Gambling Winnings In New York
New York has one of the longest running relationships with gambling of any state in the US. The state’s first gaming laws were introduced in the 17th century. Although betting is an old activity, laws are constantly evolving (especially recently), and these new legislative shifts lead to a lot of confusion for players.
Taxes on Lotto Winnings in New York New York taxes are enforced on winnings on lottery games. There is a $5,000 threshold which means you will need to pay 24 percent federal tax plus 8.82 percent New York State tax. If you live in New York City an additional 3.876 percent is taken and if you live in Yonkers there is an additional 1.477 percent. If you won the prize on or after October 1, 2000, and the proceeds exceed $5,000, your lottery prize payment is New York source income and is subject to New York State income tax. 15)Q: How will New York State tax my lottery prize payment(s) if I sell the right to future payments to a third party for a lump-sum payment? A:If the prize payment(s.
This NY gambling page looks at all forms of gambling in New York and discusses the state’s laws that cover the activities. We will cover topics, such as casinos, both online and land-based, sports betting, and poker among others. If you know exactly the topic you’d like to know more about, click on one of the navigation buttons to jump straight to the relevant section.
Gambling in New York? What Activities are Legal
Contents
- Gambling in New York? What Activities are Legal
- Online Gambling NY: Sports
- Online Poker
- NY Gambling Overview
- Famous Gamblers from the Empire State
- Frequently Asked Questions
There are many different things that come to mind when one talks about betting. There are charitable ‘casino nights,’ wagers amongst friends, and horse races. On this page, however, we’ll be focusing on large-scale operations such as casinos, sports betting, poker rooms and more. Directly below, we answer what activities you can legally play when gambling in New York. We look at both land-based gaming possibilities as well as the online gambling NY has.
New York Casinos
The most popular form of gambling is done at the handful of New York Casinos. Nothing compares to the glitz and glamor that someone feels when they step onto the game room floor. New York is one of the more restrictive states when it comes to casino gaming, but residents and visitors do have a few gaming options when in the state. The Resorts World Casino is the only gambling hall in NYC, but there is a nice selection of Indian casinos as well as racinos peppered throughout the state (ex. Yonkers Raceway).
At NY’s various land-based gambling sites, you can legally play all of the most popular casino games that we have come to know and love throughout the years. NY doesn’t have traditional casinos yet, but Native American gaming halls and racinos are legal. For those who don’t know what a racino is, it is a horse track that is allowed to carry traditional games, such as slots, but due to the state’s laws can only offer electronic table games including: baccarat, roulette and blackjack. To play traditional live card games you’ll have to visit one of the Indian Casinos in New York.
Online Gambling NY: Casinos
Many players ask “is online gambling legal in NY? The answer, unfortunately, is that there is currently no legal way, in which to play online casino games that payout real cash when in New York. In legal markets, online casinos are quickly becoming the most popular way, in which to play table and slot games. However, until the New York online gambling laws are changed, you won’t be able to play online, even if you are of legal gambling age.Popular Online Casino Games:
- Slots
- Baccarat
- Poker
- Blackjack
- Roulette
- Video-poker
- Sic Bo
- Bingo
- Scratch Cards
It isn’t all doom and gloom in the US though. Although many states have historically taken hard-lined stances towards gambling, recently many places have taken giant leaps forward towards legalizing the activity. New Jersey has legal online casinos, and many New Yorkers have started to gamble using these NJ sites. Gambling at a NJ site, however, is illegal when you are in NY, regardless of what people tell you. Nevertheless, many legislators know it is a tough task to try and halt the spread of online casinos. So, who knows? Perhaps there will be legal online gambling in New York sometime in the future.
Sports Gambling NY
The New York gambling laws are more lax when it comes to sports betting. Officially, NY sports gambling is legal. The State Gamging Commission has approved sports betting at four upstate casinos. However, New York politicians have been playing ping pong back and forth with the law, while they debate the minor details of legality. The current law requires that players be physically present when sports gambling in NY.
Where to Gamble on Sports In NY:
- World Catskills (Kiamesha Lake, NY)
- Rivers Casino (Schenectady, NY)
- Del Lago Casino (Tyre, NY)
- Tioga Downs (Nichols, NY)
To play, you’ll have to venture to the World Catskills in Monticello, NY, the Rivers Casino in Schenectady, the del Lago Casino in Tyre or the Tioga Downs which is situated west of Binghamton. If you’re in the city, the best option for sports bets at this time would be to pop on over the NJ to gamble.
Online Gambling NY: Sports
Once confined to a few locations around America, sports gambling has experienced a major shift after the federal sports betting ban was overturned in May 2018. Now, it is up to states to decide if they will legalize the activity or not. As I stated earlier online gambling in New York is currently prohibited and this extends to sports betting.NY has legalized sports betting but has yet to make a ruling as to whether or not to allow players to place bets from mobile devices. Recent reports suggest that wagering on sports in New York will, for the time being anyway, remain limited to physical sports bets. However, State Sen. Joe Addabbo (D-Queens) said that this doesn’t rule out mobile sports gambling in the future. Should New York online gambling laws change, we will update the info on this page.
Daily Fantasy Sports to Scratch Your Sports Itch
Sports fans do have one online gambling option in New York – Daily Fantasy Sports (DFS). DFS contests are available in the state, but there is a debate about whether DFS actually counts as sports gambling or not. Most have agreed that these sports contests involve enough skill/knowledge that they don’t qualify as sports betting. Until an official ruling is made, the nation’s top DFS operators still offer their products to New Yorkers.
Online Poker
Online poker, like other forms of online gambling in New York, is currently illegal. It is possible to play online at one of the popular online poker rooms, but it is not allowed to play for real money. If you’d like to gamble in New York with a poker game, you’ll need to go to a commercial casino. Social games or casino nights are allowed, but you aren’t allowed to make a profit when playing.
Popular NY Poker Events
Recently the World Poker Tour announced the first ever Deep Stacks event in New York. The event will take place at the Rivers Casino and Resort in Schenectady, NY. 2019’s event will require a buy-in of $1,100. The WPT also has a stop at the Fallsview Casino Resort in Niagra Falls, although on the Canadian side of the falls. Either way, it offers a good opportunity for skilled gamblers to play the popular card game.
Gambling on the New York State Lottery
The New York Lottery, founded in 1966, was the second lottery to be set up in an American state, The NY lottery is connected to the multi-state systems, so residents can play in the huge games like Powerball and Mega Millions. You have to buy tickets in person though, as online ticket sales have not yet been introduced or announced. Since 1967 the lottery has raised 64 billion USD for K-12 schools in New York. In this regard, the NY lotto is similar to that of other state lotteries in that it was set up as a way to generate funds for the state. Nearly 4.5 billion USD has been won as prizes by those gambling in NY on the lotto.
NY Gambling Overview
For a state that isn’t particularly known for its land-based betting options, especially considering Atlantic City is just a short stone’s throw away from NYC; the Empire State is a surprisingly lucrative gaming market. Those gambling in New York using slots spent nearly 40 billion USD in 2019 alone. This figure doesn’t even include table games at Indian Casinos, pari-mutuel horse bets and the Lotto. In addition, online gambling NY options are extremely limited, by that I mean nonexistent. If the laws changed, the market would generate even more money. Below you’ll be taken through the various New York laws governing online betting, the state’s history and how to gamble responsibly in the state.
Important New York Gambling Laws
The first New York gambling law was passed in 1656 when the territory was still under Dutch control. New Netherlands (NY’s name at the time), banned all gambling on the Sabbath. During the revolution, the British outlawed lotteries after it was discovered that they were used to help fund the rebel cause. After independence, convicted lottery patrons were pardoned.
The State’s first constitutions did not mention gambling until 1821 and the modern prohibition of the activity started in 1894. Since that year, a few key amendments were implemented in the years 1939, 1957, 1966, and 1975, which legalized pari-mutuel betting on horse racing, charitable bingo, the State Lottery for Education and charitable gaming respectively.
The first Indian casinos in NY emerged after the passage of the 1993 constitutional amendment, authorized the creation of casinos on native land. 2011 experienced a step backwards when US Federal law banned all online gambling. In 2013 the state finally permitted commercial casinos, however, there are not many in NY. The biggest change in recent year to the gambling laws of New York, is the legalization of sports betting. The state is currently rolling out its first legal sports betting infrastructure.
In terms of laws that are going to affect the individual gambler. The legal gambling age in New York is 18+ years of age. However, many gambling locations have limited their customers to 21+ so that they can legally serve alcohol on the game room floor without having to worry too much. The New York State gambling winnings tax lies somewhere around 3% depending on the amount won.
Gambling Responsibly in New York
Although many New Yorkers have a healthy relationship to gambling, there are some players that may struggle with addiction. The Empire State has a few options for those who seek help. The body in charge of overseeing responsible gaming is the NY Council on Problem Gambling. The NYCPG has worked since the 70s to provide people with the help they need.
The Board’s website offers numerous resources including a gambling hotline. NY is an extremely diverse state, so the help found on the NYCPG website is available in nine different languages. Another suitable option for problem gamblers is Gamblers Anonymous. If you visit the website, you can find local help based on your specific area.For player’s who would like to quit betting, rather than foster a healthier relationship to the activity, the best option is probably voluntary self-exclusion. If you visit the New York State Gaming Commission website, you’ll find steps on how to exclude yourself from casinos, racetracks, the lottery and fantasy sports in NY State.
History of Gambling in New York State
Gambling in New York goes right back to the 1600s. Laws governing betting go back just about as far, with the first legislation concerning gambling in what is today New York State passed in 1656. This was merely to forbid betting on the Sabbath, in order to further religiosity in the territory of New Netherland. However, this only covered certain games, and was only regarding “church hours”, displaying the area’s relatively relaxed attitudes at the time.
From this early start, there have been dozens of pieces of law passed by the various governing authorities in the area. However, most have been to restrict certain practices, with no individual New York gambling statute or law outright forbidding gambling in general.
New York’s Constitution, ratified in 1894, restricted gambling rights heavily. However, since then there have been four important exceptions, allowing for betting within the State: pari-mutuel betting on horse racing, religious, charitable and non-profit bingo, State lottery, and finally an extension to the allowance for religious and non-profit gambling to include games of chance.
Famous Gamblers from the Empire State
When people think about famous gamblers, they are not thinking about a guy who won big spinning the reels, or a successful sport better, they are thinking about poker players. During the first decade of the 21st Century, the world went nuts for poker. New broadcasting deals transformed the card game into one of the most popular spectator games on television. During the ‘poker boom’ a few stars emerged. Enthusiasts were drawn to the personalities and play styles of the world’s best card sharks. Below is some info about some of the most famous gamblers from New York
Erik Seidel
Erik Seidel is, without a doubt, the most celebrated poker player from the Empire State. For most players, winning a WSOP bracelet is a career accomplishment. Seidel, however, has won 8 throughout his career and has reached the final table a staggering 35 times. Erik’s first major bicvtory came in 1988 when he was the runner-up at the WSOP Main Event. Seidel sits atop the NY all time money list and 3rd in the global money list having earned himself over $35 million playing professionally. Currently, Seidel lives in Las Vegas.
Bryn Kenney
Bryn Kenney
Coming in at number two on the New York all-time money list is Bryn Kenney. Keeney has also eclipsed the $30mil mark throughout his career and is nearly 30 years Seidel’s junior. Kenney flaunts his New York roots proudly and can often be seen donning a Yankees or Knicks cap when on tour. Kenney has earned one gold bracelet in his career, which really puts Seidel’s accomplishments into perspective considering Kenney has earned nearly as much as Seidel, but not nearly as many bracelets. Kenney won the bracelet in 2014 after winning the $1,500 Mix Six-Handed event.
Key State Facts
As one of America’s most diverse and forward-thinking states, New York is one of the most desirable places to live in the world. At the center of all of this is of course, New York City, a thriving metropolis known as the ‘city that never sleeps’ packed with towering skyscrapers, busy streets and bullish New Yorkers. Below you can see some of the key New York state facts.
| Population | 19,542,432 |
|---|---|
| Min. Income/month | $1,926.44 |
| Largest Land-based Casino | Resorts World Casino |
| Gambling Commissioner | NYS Gaming Commission |
| Spoken Languages | English 67.9%, Spanish 15.5%, Chinese 3.3% |
| Famous Sports Teams | New York Yankees, New York Giants, New York Knicks |
| New York Tax Authority | Department of Taxation and Finance |
| Link to the State Law | http://public.leginfo.state.ny.us/lawssrch.cgi?NVLWO: |
| Gambling Winning Tax | Up to 3% (depending on winnings amount) |
| State Website Link | https://www.ny.gov/ |
| New York Gamblers | Stu Ungar |
New York is famous worldwide for many things; hip hop music, street food and the nightlife. But some of the most popular things about NYC are its sports teams. Visit any country in the world and you’ll find a New York Yankees cap. New Yorkers are fanatical about their sports teams and the games they play.
Conclusion: Future Outlook of New York Gambling
As you can see above, New York doesn’t have the most restrictive of gambling laws, but the state is also far from being one of the most liberal gambling territories in the US. Players have a few legal gambling options in New York including Indian casinos, racinos, the Lottery, horse race betting and on-site sports betting. Only time will tell whether or not online gambling is in the cards for NY, but if trends continue, we are likely to see some liberalization of the New York state online gambling laws. Until this happens however, you won’t find any online gambling in New York.
Taxes On Casino Winnings In New York
Frequently Asked Questions
The New York gambling laws seem to change week to week and the courts are experiencing a logjam when it comes to making decisions about gambling. This has led to a lot of confusion, and may players have asked us for some clarification. Below are the most common questions we receive with regards to New York gambling.
Does New York have casinos?
There are currently 25 casinos registered in the state of New York. Native American casinos make up the vast majority but there are also some dedicated commercial spaces in the city with gambling licences.
Can you gamble online in NY?
Gambling online is currently not yet legal in the state of New York. There are currently no licensed online casinos in the state, and it is a federal crime for a NY citizen to register and play at a site based outside of the state
Is sports gambling legal in New York?
Sports betting was made legal in May 2018 in the state of New York. However, the state has yet to see its first official sports bet be made. The regulation and monitoring of the industry is still being decided on a federal level which has delayed the issuing of licences.
(a)Withholding obligation -
(1)General rule. Every person, including the Government of the United States, a State, or a political subdivision thereof, or any instrumentality of any of the foregoing making any payment of “winnings subject to withholding” (defined in paragraph (b) of the section) must deduct and withhold a tax in an amount equal to the product of the third lowest rate of tax applicable under section 1(c) and the payment. The tax must be deducted and withheld upon payment of the winnings by the person making the payment (“payer”). See paragraph (c)(5)(ii) of this section for a special rule relating to the time for making deposits of withheld amounts and filing the return with respect to those amounts. Any person receiving a payment of winnings subject to withholding must furnish the payer a statement as required in paragraph (d) of this section. Payers of winnings subject to withholding must file a return with the Internal Revenue Service and furnish a statement to the payee as required in paragraph (e) of this section. With respect to reporting requirements for certain payments of gambling winnings not subject to withholding, see section 6041 and the regulations thereunder.
(2)Exceptions. The tax imposed under section 3402(q)(1) and this section shall not apply (i) with respect to a payment of winnings which is made to a nonresident alien individual or foreign corporation under the circumstances described in paragraph (c)(4) of this section or (ii) with respect to a payment of winnings from a slot machine play, or a keno or bingo game.
(b)Winnings subject to withholding -
(1)In general. Winnings subject to withholding means any payment from -
(i) A wager placed in a State-conducted lottery (defined in paragraph (c)(2) of this section) but only if the proceeds from the wager exceed $5,000;
(ii) A wager placed in a sweepstakes, wagering pool, or lottery other than a State-conducted lottery but only if the proceeds from the wager exceed $5,000; or
Tax On Casino Winnings In New York State
(iii) Any other wagering transaction (as defined in paragraph (c)(3) of this section) but only if the proceeds from the wager:
(A) Exceed $5,000; and
(B) Are at least 300 times as large as the amount of the wager.
(2)Total proceeds subject to withholding. If proceeds from the wager qualify as winnings subject to withholding, then the total proceeds from the wager, and not merely amounts in excess of $5,000, are subject to withholding.
(c)Definitions; special rules -
(1)Rules for determining amount of proceeds from a wager -
(i)In general. The amount of proceeds from a wager is the amount paid with respect to the wager, less the amount of the wager.
(ii)Amount of the wager in the case of horse races, dog races, and jai alai. In the case of a wagering transaction with respect to horse races, dog races, or jai alai, all wagers placed in a single parimutuel pool and represented on a single ticket are aggregated and treated as a single wager for purposes of determining the amount of the wager. A ticket in the case of horse races, dog races, or jai alai is a written or electronic record that the payee must present to collect proceeds from a wager or wagers.
(iii)Amount paid with respect to a wager -
(A)Identical wagers. Amounts paid with respect to identical wagers are treated as paid with respect to a single wager for purposes of calculating the amount of proceeds from a wager. Two or more wagers are identical wagers if winning depends on the occurrence (or non-occurrence) of the same event or events; the wagers are placed with the same payer; and, in the case of horse races, dog races, or jai alai, the wagers are placed in the same parimutuel pool. Wagers may be identical wagers even if the amounts wagered differ as long as the wagers are otherwise treated as identical wagers under this paragraph (c)(1)(iii)(A). Tickets purchased in a lottery generally are not identical wagers, because the designation of each ticket as a winner generally would not be based on the occurrence of the same event, for example, the drawing of a particular number.
(B)Non-monetary proceeds. In determining the amount paid with respect to a wager, proceeds which are not money are taken into account at the fair market value.
(C)Periodic payments. Periodic payments, including installment payments or payments which are to be made periodically for the life of a person, are aggregated for purposes of determining the amount paid with respect to the wager. The aggregate amount of periodic payments to be made for a person's life is based on that person's life expectancy. See §§ 1.72-5 and 1.72-9 of this chapter for rules used in computing the expected return on annuities. For purposes of determining the amount subject to withholding, the first periodic payment must be reduced by the amount of the wager.
(2)Wager placed in a State-conducted lottery. The term “wager placed in a State-conducted lottery” means a wager placed in a lottery conducted by an agency of a State acting under authority of State law provided that the wager is placed with the State agency conducting such lottery or with its authorized employees or agents. This term includes wagers placed in State-conducted lotteries in which the amount of winnings is determined by a parimutuel system.
(3)Other wagering transaction. The term “other wagering transaction” means any wagering transaction other than one in a lottery, sweepstakes, or wagering pool. This term includes a wagering transaction in a parimutuel pool with respect to horse races, dog races, or jai alai.
(4)Certain payments to nonresident aliens or foreign corporations. A payment of winnings that is subject to withholding tax under section 1441(a) (relating to withholding on nonresident aliens) or 1442(a) (relating to withholding on foreign corporations) is not subject to the tax imposed by section 3402(q) and this section when the payee is a foreign person, as determined under the rules of section 1441(a) and the regulations thereunder. A payment is treated as being subject to withholding tax under section 1441(a) or 1442(a) notwithstanding that the rate of such tax is reduced (even to zero) as may be provided by an applicable treaty with another country. However, a reduced or zero rate of withholding of tax must not be applied by the payer in lieu of the rate imposed by sections 1441 and 1442 unless the person receiving the winnings has provided to the payer the documentation required by § 1.1441-6 of this chapter to establish entitlement to treaty benefits.
(5)Gambling winnings treated as payments by employer to employee.
(i) Except as provided in subdivision (ii), for purposes of sections 3403 and 3404 and the regulations thereunder and for purposes of so much of subtitle F (except section 7205) and the regulations thereunder as relate to chapter 24, payments to any person of winnings subject to withholding under this section shall be treated as if they are wages paid by an employer to an employee.
(ii) Solely for purposes of applying the deposit rules under 6302(c) and the return requirement of section 6011, the withholding from winnings shall be deemed to have been made no earlier than at the time the winner's identity is known to the payer. Thus, for example, winnings from a State-conducted lottery are subject to withholding when actually or constructively paid, whichever is earlier; however, the time for depositing the withheld taxes and filing a return with respect thereto shall be determined by reference to the date on which the winner's identity is known to the State, if such date is later than the date on which the winnings are actively or constructively paid. If a payer's obligation to pay winnings terminates other than by payment, all liabilities and requirements resulting from the requirement that the payer deduct and withhold with respect to such winnings shall also terminate.
(d)Statement furnished by payee -
(1)In general. Each person who is making a payment subject to withholding under this section must obtain from the payee a statement described in paragraph (d)(2) of this section.
(2)Contents of statement. Each person who is to receive a payment of winnings subject to withholding under this section must furnish the payer a statement on Form W-2G or 5754 (whichever is applicable) made under the penalties of perjury containing -
(i) The name, address, and taxpayer identification number of the winner accompanied by a declaration that no other person is entitled to any portion of such payment, or
(ii) The name, address, and taxpayer identification number of the payee and of every person entitled to any portion of the payment.
(3)Multiple payments. If more than one payment of winnings subject to withholding is to be made with respect to a single wager, for example in the case of an annuity, the payee is required to furnish the payer a statement with respect to the first payment only, provided that the other payments are taken into account in a return required by paragraph (e) of this section.
(4)Reliance on statement for identical wagers. If the payee furnishes the statement which may be required pursuant to § 1.6011-3 of this chapter (regarding the requirement of a statement from payees of certain gambling winnings), indicating that the payee (and any other persons entitled to a portion of the winnings) is entitled to winnings from identical wagers, as defined in paragraph (c)(1)(iii)(A) of this section, and indicating the amount of the winnings, if any, then the payer may rely upon the statement in determining the total amount of proceeds from the wager under paragraph (c)(1) of this section.
(e)Return of payer -
(1)In general. Every person making payment of winnings for which a statement is required under paragraph (d) of this section must file a return on Form W-2G at the Internal Revenue Service location designated in the instructions to the form on or before February 28 (March 31 if filed electronically) of the calendar year following the calendar year in which the payment of winnings is made. The return required by this paragraph (e) need not include the statement by the payee required by paragraph (d) of this section and, therefore, need not be signed by the payee, provided the statement is retained by the payer as long as its contents may become material in the administration of any internal revenue law. In addition, the return required by this paragraph (e) need not contain the information required by paragraph (e)(1)(v) of this section provided the information is obtained with respect to the payee and retained by the payer as long as its contents may become material in the administration of any internal revenue law. For payments to more than one winner, a separate Form W-2G, which in no event need be signed by the winner, must be filed with respect to each such winner. Each Form W-2G must contain the following:
(i) The name, address, and taxpayer identification number of the payer;
(ii) The name, address, and taxpayer identification number of the winner;
(iii) The date, amount of the payment, and amount withheld;
(iv) The type of wagering transaction;
(v) Except with respect to winnings from a wager placed in a State-conducted lottery, a general description of the two types of identification (as described in paragraph (e)(2) of this section), one of which must have the payee's photograph on it (except in the case of tribal member identification cards in certain circumstances as described in paragraph (e)(3) of this section), that the payer relied on to verify the payee's name, address, and taxpayer identification number;
(vi) The amount of winnings from identical wagers; and
(vii) Any other information required by the form, instructions, or other applicable guidance published in the Internal Revenue Bulletin.
(2)Identification. The following items are treated as identification for purposes of paragraph (e)(1)(v) of this section -
(i) Government-issued identification (for example, a driver's license, passport, social security card, military identification card, tribal member identification card issued by a federally-recognized Indian tribe, or voter registration card) in the name of the payee; and
(ii) A Form W-9, “Request for Taxpayer Identification Number and Certification,” signed by the payee that includes the payee's name, address, taxpayer identification number, and other information required by the form. A Form W-9 is not acceptable for this purpose if the payee has modified the form (other than pursuant to instructions to the form) or if the payee has deleted the jurat or other similar provisions by which the payee certifies or affirms the correctness of the statements contained on the form.
(3)Special rule for tribal member identification cards. A tribal member identification card need not contain the payee's photograph to meet the identification requirement described in paragraph (e)(1)(v) of this section if -
(i) The payee is a member of a federally-recognized Indian tribe;
(ii) The payee presents the payer with a tribal member identification card issued by a federally-recognized Indian tribe stating that the payee is a member of such tribe; and
(iii) The payer is a gaming establishment (as described in § 1.6041-10(b)(2)(iv) of this chapter) owned or licensed (in accordance with 25 U.S.C. 2710) by the tribal government that issued the tribal member identification card referred to in paragraph (e)(3)(ii) of this section.
(4)Transmittal form.Persons making payments of winnings subject to withholding must use Form 1096 to transmit Forms W-2G to the Internal Revenue Service.
(5)Furnishing a statement to the payee. Every payer required to make a return under paragraph (e)(1) of this section must also make and furnish to each payee, with respect to each payment of winnings subject to withholding, a written statement that contains the information that is required to be included on the return under paragraph (e)(1) of this section. The payer must furnish the statement to the payee on or before January 31st of the year following the calendar year in which payment of the winnings subject to withholding is made. The statement will be considered furnished to the payee if it is provided to the payee at the time of payment or if it is mailed to the payee on or before January 31st of the year following the calendar year in which payment was made.
(f)Examples. The provisions of this section may be illustrated by the following examples:
(ii) B cashes the tickets at different cashier windows. Pursuant to paragraph (d) of this section and § 1.6011-3, B completes a Form W-2G indicating that the amount of winnings is from identical wagers and provides the form to each cashier. The payments by each cashier of $1,500 and $4,000 are less than the $5,000 threshold for withholding, but under paragraph (c)(1)(iii)(A) of this section, identical wagers are treated as paid with respect to a single wager for purposes of determining the proceeds from a wager. The payment is not subject to withholding or reporting because although the proceeds from the wager are $5,445 ($1,500 + $4,000 − $55), the proceeds from the wager are not at least 300 times as great as the amount wagered ($55 × 300 = $16,500).
(g)Applicability date. The rules in this section apply to payments made with respect to a winning event that occurs after November 13, 2017. For rules that apply to payments made with respect to a winning event on or before that date, see § 31.3402(q)-1 as contained in 26 CFR part 31, revised April 1, 2017.