What happens when non-Americans win big in Las Vegas casinos?
Published on March 01, 2024

Deborshi Choudhury, an IRS Enrolled Agent with 17 years of expat tax experience, specializes in U.S. tax preparation, tax planning, and tax advice for U.S. citizens and Green Card holders living and working in the UAE and Canada. *Schedule a consultation with Deborshi today.
*30-minutes US$347.
Table of Contents
Are there tax refunds for non-American casino winners in Las Vegas?
When non-Americans strike it lucky in Las Vegas casinos, they’re met with a 30% taxation on their winnings, a standard enforced by the IRS for all gambling earnings within the United States. This tax encompasses winnings from a range of gambling activities, including slot machines, table games, and even televised game shows.
Here’s a brief overview of what happens next:
Winners are issued a Form 1042-S, outlining the winnings and the tax withheld. To initiate a tax refund, winners must first obtain a US Individual Taxpayer Identification Number (ITIN) by submitting Form W-7 to the IRS.
This ITIN is essential for filing a US tax return as a non-resident, which opens the door to potentially recuperating some or all of the withheld taxes.
Why are non-American players’ casino winnings taxed by the IRS?
The IRS’s taxation of casino winnings from non-American players is part of broader regulations ensuring that all income earned within US borders is taxable.
The 30% withholding tax on international gamblers aligns with the US tax code’s approach to non-resident taxation, ensuring equitable treatment and adherence to US tax obligations regardless of the winner’s country of origin.
Is it possible for non-US citizens to recover taxes on casino winnings?
Indeed, non-US citizens have the opportunity to recover taxes withheld on casino winnings by filing a Non-Resident Alien (NRA) tax return. The process involves obtaining an Individual Taxpayer Identification Number (ITIN) through Form W-7 and then filing a US tax return using Form 1040-NR.
This procedure allows international winners to claim a tax refund, with the amount recoverable dependent on the tax treaty between the US and their home country.
What is the role of an ITIN in tax recovery?
An Individual Taxpayer Identification Number (ITIN) serves as a crucial identifier for individuals needing a US taxpayer identification number but who are ineligible for a Social Security Number (SSN).
ITINs are indispensable for non-US citizens who must file US tax returns or seek refunds, including those looking to recover taxes withheld on US income sources like casino winnings. This number is pivotal for engaging with the US tax system for non-residents.
What are the steps to obtain an ITIN?
To secure an ITIN, follow these steps:
- Fill Out Form W-7: Begin by completing the IRS Form W-7, which asks for detailed personal information and your justification for needing an ITIN.
- Verification Through a CAA: A Certified Acceptance Agent (CAA) can verify your identification documents, such as a non-US passport, which is a critical step since the IRS mandates original or certified copies for identification.
- Attach Your Tax Return: Form W-7 typically accompanies your federal tax return when submitted to the IRS, as it’s often necessary for processing your tax documents.
- Proof of Identity: Alongside your W-7, include original or certified copies of identification and foreign status documents. Acceptable forms of ID include passports, national identification cards, US driver’s licenses, or birth certificates.
- Mail Your Application: Send your completed W-7 form and tax return to the IRS via mail.
- Await Processing: The IRS generally processes ITIN applications within six to ten weeks, after which they will issue your ITIN.
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 aiming to recover withheld taxes, especially from casino winnings. These tax experts are adept at handling US tax regulations and can facilitate the process of reclaiming withheld taxes.
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.
Our tax experts have the knowledge to help you reclaim tax withheld on your casino winnings.
Who is eligible to recover withheld casino taxes?
The opportunity to recover withheld casino taxes is available to a broad range of non-US individuals, provided certain criteria are met:
- Non-US Residents: If you’re not a US citizen or a resident alien, you may qualify to reclaim withheld casino taxes.
- Valid Identification Required: You’ll need a government-issued ID from your country and an Individual Taxpayer Identification Number (ITIN) from the IRS.
- Documentation of Winnings: To claim a refund, you must present documentation, such as Form 1042-S from the casino, detailing your winnings and the amount of tax withheld.
- Tax Treaty Advantages: If your home country has a tax treaty with the US, you might benefit from reduced withholding rates or even total exemption, depending on the treaty terms.
How do I prepare for tax reclamation?
Before embarking on the tax reclamation journey, here are some essential steps to consider:
- Verify Your Eligibility: First, ascertain your eligibility for a tax refund, typically applicable to non-US citizens with US gambling winnings subject to tax withholding.
- Document Collection: Assemble all pertinent documents, including your ID and Form 1042-S from the casino, which outlines your winnings and the tax withheld.
- Securing an ITIN: If you lack an ITIN, apply for one using Form W-7. This number is vital for the tax reclamation process.
- Filing a US Tax Return: To claim your refund, you’ll need to file a Non-Resident Alien (NRA) tax return.
The information provided herein is for general informational purposes only and should not be considered professional advice. While we aim to provide helpful and accurate information, we make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained here or linked to from this material.
Always get professional advice from a US international tax specialist.
We offer professional, tailored tax advice. Click here for more information.