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When you win at Hollywood Gaming
By ROBERT CONNELLY
AUSTINTOWN
The lights and noises crank up after a jackpot win — but what do you do next at Hollywood Gaming at Mahoning Valley Race Course?
After winning, officials from Hollywood Gaming verify you’re a winner, and then you can go to a window.
If your win is more than $1,200 it becomes reportable as income for slots and video lottery terminals, according to the Internal Revenue Service’s 2014 W-2G Form, Certain Gambling Winnings.
That form is the one needed by gamers to file their taxes at the end of the year. That form has four categories for the IRS: horse and dog racing, jai alai, and other wagering transactions; sweepstakes, wagering pools, and lotteries; bingo, keno, and slot/VLT machines; and poker tournaments.
Madeline Caldwell, spokeswoman for Hollywood Gaming, said the federal tax level is 25 percent and jumps to 29 percent on wins of more than $5,000.
She added that the racino does not withhold federal taxes on VLT jackpots unless asked to or if the winner is a foreign citizen or doesn’t provide their Social Security number.
The Marquee Rewards player cards can track winnings and losings over time and Caldwell said in an email, “Statements will be made available on an annual basis and is only representative of their play while using their Marquee Rewards card.” That statement helps when players are to file taxes at the end of the year.
Youngstown-based tax attorney Larry Richards said the most important thing for players at the racino is to keep track of their wins and losses for tax purposes. He added being mindful enough of the taxes a winner owes also is important.
“People will win and have the minimum amount withheld and then they don’t have the discipline” to save money for the taxes still owed, Richards said.
“You really [can’t] spend money and this is probably no different than lottery winners ... they think they have more cash than they do.”
He also said for gaming losses, players can use those as deductions on their taxes. However, they have to itemize those and could take away from yearly deductions by doing that.
“The problem is that people win and they don’t keep track of their losses and the IRS can disallow those losses.”
If a player’s winning jackpot is more than $1,200, 4 percent of the Ohio income tax is taken out and the racino will then issue a W2-G form for that withholding.
A winner can elect to take a cash or check payment and can receive the payment in a lump sum or divided up.
The lottery commission is mandated by state law to give 0.5 percent of each facility that houses VLTs or slots to support programs for gambling addiction and other related services, that same operating standards form stated.
Also, because Hollywood Gaming is a horse-racing venue, between 9 and 11 percent is withheld for the horsemen from each month’s reported earnings to the lottery commission. Those are revealed on the seventh of every month.