“What Happens in Vegas … Ends Up with the IRS?”

You’ve just landed. The air conditioning in the airport taxi blasts the dry desert air off your face as the neon “Welcome to Fabulous Las Vegas” sign glides past the window. You’ve planned a long weekend, maybe with your partner, maybe with your mates, or maybe on your own, chasing the big thrill.

Two hours later you’re at a poker table in the Bellagio. Free drinks, people laughing, air conditioning set to cold storage. And then it happens:

You win. Big.

Maybe it was $3,000 at the blackjack table. Or $10,000 in a poker tournament. Or even $25,000 on a garishly colorful slot machine that suddenly starts beeping like a broken fridge on speed.

Congratulations!

But you’ve barely recovered from the shock when a man in a suit and tie appears behind you and says, politely but firmly:

“Sir, please come with me. You need to fill out some paperwork for the IRS.”

Many European tourists are surprised: gambling winnings in the USA (in Las Vegas, Atlantic City or a tribal casino, for example) are subject to US income tax, even if the winner isn’t a US citizen.

Yes, you read that right: even as a tourist from Europe, you’ll be asked to pay up on your winnings, at least unless you do something about it.

And the IRS (the US tax authority) is anything but sleepy here. Casinos in the USA are required to report larger wins immediately and withhold a flat 30 % of the amount if the winner is a foreigner without a US tax number (ITIN).

The magic thresholds are

• $1,200 for slot machines or bingo

• $1,500 for keno

• $5,000 for poker tournaments (after deducting the buy-in)

From this threshold at the latest, it’s paperwork time. The casino reports your win to the IRS and automatically withholds 30 % if you can’t provide a W-8BEN and a US tax number (ITIN).

Example:
You win $10,000 on a slot machine.
→ The casino pays you only $7,000.
→ The remaining $3,000 go to the IRS.

Can you get it back? Yes, in most cases!

The good news:

Depending on the tax treaty between your home country and the USA, you may be able to claim a refund.

Switzerland:

Things are a bit more complicated for Swiss tourists. The Swiss-US tax treaty allows US withholding tax in certain cases, including on gambling winnings.
→ A refund is not ruled out, but not guaranteed
→ It depends on the type of game and your tax situation in Switzerland
→ We’re happy to advise you individually

1. You need an ITIN (Individual Taxpayer Identification Number)

Without this nine-digit US tax number, nothing happens. It is used solely for US tax purposes, which is exactly what this is about, even if you’ll never live in the USA.
👉 We’re happy to help you apply for this number. These days it can often even be done online, with identity verification by video call.

2. You need to file a US tax return (Form 1040-NR)

Sounds dramatic, but it’s doable, especially with us at your side. We declare your winnings on it and claim a refund of the tax withheld. What else goes into a US tax return we explain separately.

3. You attach Form W-7 (the ITIN application) and your passport, either the original or a copy certified by the issuing agency

These documents are submitted to the IRS together with your tax return. So you report your gambling winnings on Form 1040-NR and claim the refund of the withheld tax on the same return, with the ITIN application and your passport enclosed.

4. Be patient: the IRS takes its time

A refund can take several months, but as a rule you get your money back if everything was done correctly.

Then your winnings really have shrunk by 30 %, for good.
The IRS keeps the money, and there is no automatic refund. Without a claim, nothing happens.
You’d be giving up $3,000 on a $10,000 win, just like that.

Switzerland

One of our clients (let’s call him Markus from Salzburg) flew to Vegas with his brother for a “boys’ trip”.

He spent an evening at the roulette table in Caesars Palace, mostly for fun. And then: a $6,000 win in a single game.

The next day, $1,800 was withheld right at the payout.

He contacted us while still traveling. We took care of:
✅ the ITIN
✅ the tax return
✅ all documents, correct and on time

Nine months later the money was back in his account, with interest.

Mount Bonnell Advisors helps you every step of the way:

🔹 ITIN application
🔹 Preparing and filing your US tax return (1040-NR)
🔹 Advice on the tax implications in your home country
🔹 Communication with the IRS if questions come up

We know the process. We’ve done this dozens of times. And we know the key is in the details. Do everything right, and you get your money.

Las Vegas can be magical: a place where you become a winner in one stroke.

But even in Vegas, one rule holds: the house always wins.

If you don't deal with your tax obligations in time, the taxman wins, not you.

👉 So: enjoy your trip. Play. Drink the free whiskey. Have a blast.

But if you win, let us help you keep your winnings instead of watching them vanish into the IRS's pot.

If you've had a win or are planning a trip to the USA:

➡️ Book a personal consultation or
➡️ Have us handle your ITIN application and tax return right away

We're here for you. No gambling required. 🎰 You'll find more articles on US taxes under News.

Consultation & implementation

If you'd like to find out what this means for your own situation, the best step is to book a consultation.