Large jackpot payout question - taxes/legaility

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#1

I don’t currently have this issue, but I’ve been thinking about this anyway.

As a US player, what happens if I were to win a substantial jackpot…say 100k or even 1M? Funds are instantly available on the ignition balance and I would want to withdrawal most of it, so I would follow the guidelines and probably do BTC to Exodus and then to Coinbase.

Now the part I don’t understand, from Coinbase to my bank account…a substantial amount shows up, Bank/IRS would flag it and then what?? What about end of year taxes on it. Usually casinos provide a form W-2G, but in this case there isn’t.

Also, in my state the gambling law says online gambling is illegal, but on Ignition’s site my state isn’t listed as such. I’m concerned I could win some substantial money on here and then my accountant would tell me it is illegal.

Thoughts?

#3

Hi @JP1276

The thing is you will have to follow the normal withdrawal process so the funds will be withdrawn per interval based on the large amount you quoted.

#4

Hi, yes I understand there are limits depending on the method used…be it daily, weekly etc…but it is more of a question about when it hits my bank account. With no formal tax forms to account for it, I’m curious how that would work from an accounting perspective. Telling my account that this 100k deposit was from gambling winnings, with no tax form to correspond, is rather odd I think.

I hope to have this issue, but just been thinking about it. I’d be curious what others have done.

#5

Honestly, this is something I would look to the reddit community to find your answer. You’re more likely to get a larger group of people from your state that have addressed this issue.

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