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Las Vegas Biggest Wins: The Art of Being Lucky

March 29, 2024

Las Vegas Biggest Wins: The Art of Being Lucky

A lucky gambler hit the biggest prize of his life on the progressive Wheel of Fortune slot machine in Las Vegas. The life-changing event happened at the Cosmopolitan of Las Vegas gambling resort over the course of a weekend party in May 2018.

The winner was a man who was on a trip with his two brothers for his birthday and bachelor party. He celebrated the big event in style and won a huge $1,322,750.87.

The Canadian visitors hit it big about 30 minutes into their game play at the casino. The lucky winner made news both for his huge win and for the interesting question of how much of the large amount he could bring back across the border.

The casino shared their happiness on social media by tweeting, “He knows how to celebrate Memorial Day Weekend right – congrats.”

The win was made on a Wheel of Fortune slot machine, which is a licenced creation of International Game Technology (IGT). Although neither the Cosmopolitan nor IGT disclosed the exact amount wagered by the lucky man, the allure of the progressive jackpot undoubtedly added an extra layer of thrill to his gaming experience.

Las Vegas Casino Winnings and Tax Implications

There are specific rules about winning money in casinos that are different from other tax rules. The American income tax expert TurboTax stated that gambling gains are not progressive like income taxes. The federal tax rate stays the same at 24%, no matter how much money someone wins, $10,000 or $1 million. The previous tax rate was 25%, so this rate is 1% less than that. This change took effect for the 2018 tax year.

The IRS says that casinos must take 24 percent out of certain types of gains, such as…

$600 or more at a horse racetrack (if that is 300 times your bet)
$1,200 or more on a slot machine or bingo game
$1,500 or more in keno winnings
$5,000 or more in poker tournament earnings

In line with federal law, the Cosmopolitan deducted $317,460.20 out of the Wheel of Fortune prize to pay the IRS and gave the player a cheque for $1,005,290.67. The 2018 tax change gave the Canadian recipient an additional $13,227 compared to what he would have received in 2017.

The casino gave the winner a W2-G form along with the seven-figure cheque. This is an important document for paying taxes. This form lists the money you won from gaming and shows the IRS that you have already paid taxes on it.