Do tourists pay tax on Vegas winnings?
Updated on April 29, 2025
Reviewed By
Aya Takriti, an IRS Enrolled Agent with 11 years of expat tax experience, specializes in US tax preparation, tax planning and tax advice for US citizens and Green Card holders living and working in the Middle East. *Schedule a consultation with Aya today.
*30-minutes US$247.
Table of Contents
Are non-US citizens taxed on their casino winnings in Las Vegas?
Yes, tourists do pay taxes on their Vegas winnings. Casino winnings count as income generated in the US. So, the IRS taxes them even if the winner is a non-US citizen or simply a tourist.
The IRS taxes gambling winnings from tourists as part of broader regulations, ensuring that all income earned within US borders is taxable.
What are the tax rates for tourists?
When tourists strike it lucky in Las Vegas casinos or anywhere in the US, they’re subject to a 30% tax on their winnings. Casinos issue them a Form 1042-S outlining the winnings and the tax withheld.
Are US citizens taxed differently than non-US citizens?
Yes, taxing gambling winnings differs significantly for US citizens and tourists.
US citizens and green card holders also need to report their winnings and pay taxes, with no exceptions. This will be part of their annual income. However, if they itemize deductions, they can deduct their gambling losses up to the amount of their winnings.
Non-US citizens are not allowed to deduct their gambling losses to lower their taxable income. Because the IRS imposes a 30% flat rate on tourists, Las Vegas casinos automatically withhold this 30% on their Vegas winnings before they even see the money.
For example, if a US citizen and an Australian tourist both win US$10,000 but lose US$7,000.
The US citizen can report US$10,000 in income but can deduct US$7,000. So they only pay tax on US$3,000.
Australian tourists still get 30% (US$3,000) withheld on the full US$10,000, with no loss deductions. That’s a harder tax hit.
Is it possible for non-US citizens to recover taxes on casino winnings?
Non-US citizens can have the opportunity to recover their withheld taxes on casino winnings if their home country has a valid tax treaty with the US. However, not all countries with a tax treaty are allowed to recover taxes on their Vegas winnings, such as Australia and New Zealand.
A tax treaty is a relief procedure that prevents double taxation on income like gambling winnings. A US tax treaty can affect the taxation of gambling winnings for foreign nationals.
Depending on the tax treaty rules, non-US citizens can fully refund the tax on their casino winnings or will be subject to a reduced rate, while some countries can’t.
Which countries can claim tax refunds on Vegas winnings?
Below are the countries that allow their residents to claim a tax refund on their casino winnings:
- United Kingdom
- France
- Germany
- Japan
- Italy
- Russia
- Spain
- Turkey
- Netherlands
- Sweden
- Ireland
- Denmark
- Finland
- South Africa
- Austria
- Belgium
- Czech Republic
- Hungary
- Ukraine
- Iceland
- Slovenia
- Slovak Republic
- Bulgaria
- Lithuania
- Latvia
- Luxembourg
- Tunisia
Our tax experts have the knowledge to help you reclaim tax withheld on your casino winnings.
How do I recover taxes on casino winnings?
You will need to file a Non-Resident Alien (NRA) tax return with the IRS to report your Vegas winnings. This procedure allows you to claim a tax refund. The recoverable amount will be dependent on the tax treaty between the US and your home country.
But before you can file your NRA tax return, you will need to have an Individual Taxpayer Identification Number (ITIN). Without this, you cannot proceed in claiming a tax refund on your Vegas winnings.
How can I acquire an ITIN?
- Acquire IRS Form W-7: This will serve as your application form for an ITIN. You can download this at the IRS’ official website.
- Gather personal information and documentation: Your personal details and proof of identity will be a requirement. So, prepare original and certified copies of your identification.
- Verify your documentation: You will need to verify your identification documents, such as your foreign passport or driver’s license, with a Certified Acceptance Agent (CAA).
- Prepare your NRA tax return: Form W-7 should be attached to a federal tax return upon submission.
- Submit your application: You can mail your completed Form W-7 and US individual tax return to the IRS.
- Await processing: The IRS generally processes ITIN applications within 6 to 10 weeks, after which they will issue your ITIN.
You can also get professional assistance with acquiring an ITIN. Expat US Tax professionals are IRS-authorized Acceptance Agents, which means they’re qualified to handle ITIN applications on your behalf.
What documents do I need to report my Vegas winnings?
Below are the relevant documents you’ll need to collect to report your Vegas winnings:
- Form 1042-S
- Form 1040NR (Nonresident Alien Income Tax Return)
- Tax Treaty Documents (if applicable)
- Form 8843 (if applicable)
- Valid identification papers
What happens if I don’t report my Vegas winnings?
If you fail to report your gambling winnings, you may face penalties, interest, and additional taxes owed to the IRS. The IRS closely monitors gambling activities, and non-compliance can lead to significant legal issues.
Are winnings from slot machines taxed differently than table games or sports betting?
No, the tax treatment of casino winnings is generally the same, regardless of whether the winnings are from slot machines, table games, poker, or sports betting. All winnings are considered taxable income by the IRS.
What’s the process for reclaiming gambling taxes?
To summarize, you need to file Form 1040-NR and attach Form 1042-S to report your winnings and withholding.
If you don’t have an ITIN, include Form W-7 and proof of identity (like a certified passport copy). After this, you can claim any applicable tax treaty exemption or overpayment.
Submit the return to the IRS, and if approved, you will receive a refund of the over-withheld amount. Processing typically takes several months.
Can I get professionals to help me with tax recovery?
Yes, you can. Engaging with professionals who specialize in US tax law is crucial for non-US citizens or tourists who want to recover their withheld money from the IRS, especially casino winnings.
They offer guidance on preparing and filing essential documents, such as the Non-Resident Alien (NRA) tax return and the ITIN application (Form W-7), ensuring that your application is compliant and accurately reflects your tax recovery claim. Additionally, utilizing a Certified Acceptance Agent for document verification streamlines the process, enhancing the likelihood of a successful tax recovery effort.
FAQs
Is TIN and ITIN different?
Yes, A Tax Identification Number (TIN) is an umbrella term in the US for any number the IRS uses to identify a taxpayer, while an ITIN is a type of TIN issued to individuals like tourists who are not eligible for a Social Security Number (SSN).
Which countries have tax treaties with the US that exempt or reduce tax on gambling winnings?
You can check the IRS’s official website to see if your country is among many that have a tax treaty with the IRS.
Can a tourist apply for an ITIN without a US address?
Yes, Form W-7, the application for an ITIN asks for a mailing address. It doesn’t have to be a US address, so you can use your foreign residence.
What is a CAA?
A Certifying Acceptance Agent is an IRS-authorized individual or entity (like a tax firm, accountant, or legal representative) that can assist individuals in getting an ITIN and verifying identification documents so tourists don’t need to mail their original documents to the IRS.
