How do Casinos Pay out Colossal Sums of Money? (All-in Guide) 

Picture this; you wake on one of your luckiest days, play on a slot machine, and hit the jackpot! Amazing, right? Let’s say you win $ 50,000; your next concern would be how to get the money and go for that holiday on your bucket list! How will the casino pay out this large sum of money?

Key points

  • Casinos run massive jackpot games; players win and are paid;
  • How casinos handle the payments depends on the casino’s rules and the regulations of the state and federal governments;
  • There are instances where the casino might withhold your winnings;
  • It would help to acquaint yourself with the state rules and casino terms before you start wagering.

Well, many people across the globe usually ask themselves many questions concerning casinos and winnings. This post will provide essential information concerning massive winnings in casinos. Please keep reading for more details.

How much money can players cash out at a casino?

In the past, gamblers had to go to a brick-and-mortar casino to wager. But, thanks to technological advances, you can play your favourite roulette or slot game from the comfort of your home! So, how do the casinos handle your winnings?

Withdrawal limits

While it is exciting to snatch a big score, you also have to work within the casino’s terms and conditions. One very critical condition is the withdrawal limits. All reputable casinos have a withdrawal limit.

Every casino player’s nightmare is the withdrawal limits and maximum payout limits. However, you can avoid unpleasant moments by checking the casino’s withdrawal limits and other terms.

You might be asking: what are these withdrawal limits you’re talking about? A withdrawal limit is the casino’s limit on the amount players can withdraw at a time per transaction. These rules are pretty standard in most establishments. However, not all casinos have limits.  

Therefore, the first thing you should do before you start wagering at a casino is to check the withdrawal limits. The limits come in different forms, such as:

  • Monthly
  • Weekly
  • Daily
  • Per transaction

As a result, the casino will have a maximum specified amount for each period. Once you exceed it, you’ll have to wait for the next period. Therefore, the amount you can withdraw from the casino depends on these limits. Your best bet is to look for a casino with a high or no withdrawal limit.

Why do casinos have withdrawal limits?

There are several reasons why casinos have such restrictions, including:

  • The casinos have to maintain their financial stability. They must ensure that as hundreds of players withdraw their winnings, the hole in their budget will not prevent them from covering new wagers.
  • The limits also allow the casino to buy time and allow other players to wager to help the casino recover from their losses. However, a reputable casino should have enough money in its reserves to finance its operations.
  • Also, the casino wants to protect the players. You could quickly lose your head after winning a massive amount of money. The casino assumes that slowing down the withdrawal process gives you time to think more soberly.
  • The limits also help to handle fraud. Picture this; you win a million dollars then a hacker wipes your account clean! Unimaginable, right? But, if there is a withdrawal limit, the hacker will not defraud you of all your winnings.

What happens if a player wins a million dollars at the casino?

If a player wins a million dollars at the casino, here is what is likely to happen in most establishments:

The casino congratulates you and escorts you to the back office

Someone will escort you to the back office and offer you something to drink or eat in the house. After that, you’ll be asked if you are interested in any of the current accommodations upgraded (if you’re staying at the property).

The casino wants to keep you happy. Additionally, they also want to encourage you to return to the tables so they can recoup some if not all of their money!

You’ll meet the manager

You’ll also meet the property’s manager, and the casino will explain the payout rules. If you thought you’d walk away with a million dollars, you thought wrong. 

First, it might not be sustainable for the casino to pay you that much at once. Moreover, it is for your benefit that you don’t walk around with huge sums of money; it is dangerous.

Fill out tax forms

You must fill out the W-2G form then the casino will offer you a check or an Electronic Balance Transfer (EBT) to your preferred account anywhere globally. The account should not be under sanctions by the US Department of Treasury. It is advisable to go for the EBT option.   

The casino might request you to appear in promotional materials

Note that you’re not under obligation to appear on promotional materials. Some people refuse. Therefore, you must choose if you want to appear on the promotional materials.

While the casino will advise you to take the one million dollars in instalments, they can also issue you the whole amount. However, you’ll have to fill several agreements that absolve the casino of any blame.

Do casinos take a certain percentage of your winnings?

When you go to the racetrack or casino, it will help to remember that your winnings have tax implications. The federal and state governments have placed special taxes on casino winnings.

How much you win determines the percentage the casino will take. For instance, the casino must report winnings in the following amounts to the IRS:

  • $ 600 and above at a horse track (if it is 300 times your wagers)
  • $ 1,200 and above at bingo games and slot machines
  • $ 1,500 or above in keno winnings (minus the amount you wager)
  • $ 5,000 and above in poker tournament winnings (minus the amount you wager)

If you’re in any of these situations, you’ll have to offer the payer your Social Security Number. You must also fill out the IRS Form W2-G to report the total amount of your winnings. The casino usually takes 25 per cent off your winnings for gambling taxes to the IRS before it pays you.

However, not all gambling winnings in the above amounts require you to fill out IRS Form W2-G. For instance, despite the amount, you wouldn’t have to fill out the W2-G form for winnings from table games like baccarat, craps, blackjack, and roulette.

However, this does not mean you’re exempted from paying taxes or reporting your gambling winnings. You must report all gambling winnings to the IRS. It only means you don’t have to fill out the W2-G forms.

State taxes

Apart from the federal taxes payable to the IRS, there are state government taxes on gambling income. Each state has its unique formula and rules they apply to gamble income. Some states have a flat rate tax, while others base the tax on the amount you win.

How do casinos cash out large winnings?

Casinos use different methods to pay their winners. The options you have depend on location and the game you wagered on. Some games permit a lump sum payment, where they pay the money upfront.

On the other hand, some games disburse the winnings through an annuity. Here, your winnings are paid in installments. Casinos use different methods to pay players their winnings.

The casinos usually give winners up to 90 days to decide the mode of payment that works best for them. Nonetheless, most casinos can pay the whole amount upfront.

Annuity vs. lump sum

Before deciding whether to receive your winnings in a lump sum or annuity, it would help to seek the professional input of a certified financial planner. It would help to note that each payout method has its tax implications. Therefore, the model you choose determines how much you’ll cash in.

Lump sum

This option means you settle for cash at a discounted rate. The discount rate varies from 50 to 60 per cent of the total winnings. Moreover, the casinos determine the discount rate based on the current prime rate or that formulated by the US Treasury securities selected by the license.

Therefore, while this method gives you a bulk of cash at once, you are required to pay taxes in their entirety when it is disbursed. But, you’ll pay the taxes once. This will be an ideal option if you have pressing needs.


When you claim an annuity, you’ll commit to a long-term payment plan that can take up to 30 years. This would guarantee an extra income source over time. Generally, the casino pays the winnings at a minimum amount yearly.

Note that annuity leaves your casino winnings means sacrificing some of its value. Here are three main ways you could lose out:

  • Inflation: inflation can negatively affect your payment’s buying power; suppose the dollar drops substantially.  
  • Depreciation: if you have cash at hand, you can put it in a tax-advantaged or interest-bearing account. However, in an annuity, the value depreciates.
  • Limited access to cash: having the cash at hand allows you to make purchases rather than wait.

Casino payouts by state

StatePayout percentage
New York93.75%
Kentucky (historical horse wagering)92.06%
Connecticut (slots machine only)91.77%
New Jersey91.41%
South Dakota91.36%
Rhode Island90.88%
West Virginia89.72%

Does a casino have to let you cash out?

Saying that a casino wants you to win is more of an oxymoron. The casino wants to make money from your betting; therefore, the odds will always be stacked against the player. However, when you win, the casino is obliged to pay you.

But, there are times when the casino can’t or won’t pay. Some of the reasons are reasonable. Here is why a casino would refuse to let you cash out:

Lack of identification: the casino has to run an ID check on you for reasons such as money laundering. If you don’t present a valid identification document, they can’t perform the checks; hence you won’t get paid.

The Gambling Intercept Payment System (GIPS): The GIPS is a database that contains names of people who have monetary judgments against them and owe child support, among other financial issues. In such cases, the casino will use your winnings to settle what you owe.

Machine malfunction: sometimes, the slot machine can malfunction and inform you that you’ve won thousands of dollars while, in reality, you’ve won a few dollars. In such a case, the casino is not obliged to pay you.     

How much cash does a casino hold?

The amount of cash a casino holds is determined by the Audit Division of the Gambling Control Board, regulation 6. 150. They don’t just guess the maximum possible payout the casino might face. Instead, they use precisely calculated formulas depending on the casino’s size and the games it offers.

However, despite the size of the casino, it is required to comply with set regulations. All casinos must alert Gaming Control immediately if their bankroll falls even by $1 beneath the required amount.

A casino’s bankroll is divided into two primary categories:

  • The money they must keep “on-hand.” This is the hard currency stored in cages, vaults, and kiosks.
  • They must also have money in the “next-business-day” category. This is the money that the casino would need to issue checks or wire transfers for because they are too big to be handled through straight cash transactions.

When it comes to the actual amount, it is not very complicated to calculate. However, you must have the relevant figures at your disposal. The GCB usually offers an Excel spreadsheet with all the codes that work it out once the casino types the required information.

Final thoughts

It is an open secret that more people wager on casinos, especially online casinos for different reasons. However, every one of them is looking for that massive win. Be that as it may, it is critical to remember that legal casinos operate under a set of rules and regulations.

Therefore, ensure you read a casino’s terms before you start wagering. These terms will determine how the casino handles your payout. You can either take the winnings as a lump sum or in an annuity. Please think it through before you settle on a payment option.

So, if you were wondering how casinos handle large payouts, I believe this post has shed some light. Finally, please exercise responsibility in your wagering activities.

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.