The lights are flashing, bells are ringing, and your screen shows a number you can't quite believe. You've hit a jackpot. Now what? This guide walks you through everything that happens next—and how to protect your winnings.
Immediate Steps After Hitting a Jackpot
Stay Calm and Stay Put
Your first instinct might be to jump up and celebrate. Resist it—at least for a moment.
Do not leave your machine. Until a casino attendant verifies your win, you need to stay at your slot or table. Leaving could complicate the payout process or even invalidate your jackpot.
Don't touch anything. The machine is now in a locked state. Don't press buttons, pull handles, or insert more money. Wait for staff to arrive.
Secure Your Documentation
While waiting:
- Take a photo of the winning screen (discreetly)
- Locate your player's club card
- Have your ID ready
- Note the machine number and time
What Happens Next
- Attendant arrives - Usually within minutes for large jackpots
- Verification - They'll check the machine, pull records, and confirm the win
- Paperwork - For wins over $1,200, you'll complete tax forms
- Identification - You'll need valid government ID
- Payout - Cash, check, or both, depending on amount
Understanding Jackpot Thresholds
Tax Reporting Thresholds (2025)
| Game Type | Reporting Threshold | Withholding |
|---|---|---|
| Slots/Bingo | $1,200+ | None (unless 300:1+ odds) |
| Keno | $1,500+ | 24% if over $5,000 |
| Table Games | $600+ and 300:1 odds | Varies |
| Poker Tournaments | $5,000+ | 24% |
Important: These are IRS reporting thresholds, not when you owe taxes. You owe taxes on ALL gambling winnings, but casinos only report wins above these amounts.
W-2G Forms
For wins requiring W-2G forms, the casino will:
- Collect your Social Security Number
- Verify your identity
- Complete the form before paying you
- Give you a copy; send one to the IRS
What If You Refuse to Provide ID?
The casino must withhold 24% of your winnings if you don't provide valid identification and SSN. You'll still get the remaining 76%, but you've just paid more in taxes than necessary.
Types of Jackpot Payouts
Hand Pay vs. Ticket-Out
Hand pay: Any jackpot over $1,199.99 requires staff to pay you directly. The machine locks and displays a "Hand Pay" message.
Ticket-out: Wins under $1,200 print as a voucher (TITO ticket) you can cash at the cage or insert into another machine.
Cash vs. Check
Under $10,000: Usually paid in cash or casino chips.
$10,000+: Many casinos prefer to issue checks for large amounts. This is for security (yours and theirs) and anti-money laundering compliance.
Very large jackpots ($100,000+): May require:
- Multiple forms of ID
- Tax withholding
- Security escort
- Appointment for payment
Progressive Jackpot Payouts
Wide-area progressives (linked across multiple casinos) have special considerations:
Annuity vs. Lump Sum:
- Many large progressives offer annual payments over 20-25 years
- Lump sum option typically pays 50-60% of advertised amount
- Example: $1 million jackpot might offer $50,000/year for 20 years OR ~$550,000 lump sum
Verification time: Progressive wins may take hours or days to verify, as the progressive company must confirm the win.
Tax Implications
Federal Taxes on Gambling Winnings
Gambling winnings are fully taxable income at your regular tax rate. There's no special "gambling income" rate.
Example:
- Jackpot: $50,000
- Your tax bracket: 24%
- Federal taxes owed: $12,000 (approximately)
State Taxes
Most states also tax gambling winnings:
- Some states (Nevada, Florida, etc.) have no state income tax
- Others tax gambling winnings like regular income
- A few have special gambling tax rates
The Importance of Loss Documentation
You can deduct gambling losses against gambling winnings (but not more than you won). This requires:
- Detailed records of gambling sessions
- Receipts, tickets, statements
- Win/loss statements from casinos
Example:
- Won $50,000 jackpot
- Documented losses over the year: $20,000
- Taxable gambling income: $30,000
Get Professional Help
For jackpots over $25,000, strongly consider consulting:
- A tax professional familiar with gambling income
- A financial advisor
- An attorney (for very large wins)
The cost is worth it. Bad tax planning can cost you thousands.
Protecting Your Jackpot
At the Casino
Request security. For large wins, ask for a security escort to your car or hotel room.
Don't announce it. Avoid shouting, posting on social media, or telling strangers about your win.
Leave promptly. Cash out and leave. Casinos are designed to keep you playing. The house edge doesn't care that you just won.
After Leaving
Secure the money. Don't leave large amounts in your hotel room. Use the hotel safe or, for very large amounts, arrange for a bank transfer.
Tell only trusted people. Money attracts problems. Be selective about who knows.
Avoid immediate big decisions. Don't buy a car or house the next day. Give yourself time to process and plan.
Common Jackpot Myths
"The machine was due"
Slots don't work that way. Each spin is independent. The machine that just hit a jackpot has the same odds as before.
"The casino can refuse to pay"
Casinos can only refuse payment if there's a machine malfunction or you violated rules (cheating, underage gambling). Legitimate jackpots must be paid.
"I can avoid taxes by not claiming a player's card"
The IRS still requires reporting for wins over thresholds, regardless of whether you used a player's card. No card just means you also miss out on comps.
"They pay big winners in back rooms to avoid publicity"
Large wins are handled professionally, but there's no secret back room. Verification and paperwork happen at the machine or nearby office.
What NOT to Do
Don't Keep Playing
The most common mistake after a jackpot: putting it all back. If you won $10,000, don't sit back down and start betting $100/spin. At minimum, set aside 90% of your winnings as untouchable.
Don't Skip the Paperwork
Refusing to fill out tax forms doesn't make the taxes go away. It just means you'll pay more (24% automatic withholding) and have IRS headaches later.
Don't Loan Money Immediately
Everyone will have a "can't miss" opportunity. Your jackpot isn't the solution to other people's problems.
Don't Post on Social Media
Resist the urge to show off. You don't need the attention—or the potential problems that come with it.
Special Situations
International Visitors
If you're not a US citizen or resident:
- 30% federal withholding is typically required
- Tax treaties may reduce this (varies by country)
- You may be able to recover some withholding via tax filing
Group Play
If you hit a jackpot while playing as a group:
- Decide beforehand how to split winnings
- All recipients must complete tax paperwork
- The person who hit the jackpot is primarily responsible
Disputed Jackpots
If you believe a jackpot was incorrectly denied:
- Document everything
- Ask for the casino's gaming control contact
- File a complaint with the state gaming commission
- Consult a gaming attorney for large amounts
Managing Your Windfall
The 90-Day Rule
Don't make any major financial decisions for 90 days after a big win. Emotions run high; let them settle.
Smart Allocation
Consider this framework:
- 30-40% for taxes (set aside immediately)
- 10% for fun/celebration
- 25-30% for savings/investments
- 20-25% for debt reduction
Professional Guidance
For wins over $100,000:
- Hire a CPA familiar with gambling income
- Consider a fee-only financial advisor
- Review estate planning implications
- Evaluate investment options
The Bottom Line
Hitting a jackpot is exciting, but the moments after matter. Stay calm, follow the process, and protect your winnings. Don't become a cautionary tale about the jackpot winner who lost it all by staying at the casino or making poor decisions.
The best jackpot story ends with you enjoying your winnings responsibly—not explaining to your accountant how it all disappeared.