A Cuban casino player who lives in the U.S. has finally been able to claim his $6,400 winnings, 18 months after hitting several jackpots in the Seminole Classic Casino.
Eduardo Cardoso hit three jackpots at the tribal casino but discovered there are economic sanctions on players from various countries, including Cuba.
The law prohibited the casino from paying out until Cardoso proved he was a US resident. After 18 months of waiting, he received the necessary documentation, and the casino promptly paid out.
Florida’s Gambling Laws
Florida’s gambling laws dictate that casino gambling is legal on certain tribal lands, although there are no retail casinos within the state. Many Floridians do choose to play online, but because online casinos are not regulated, either, and not even tribal casinos are allowed to offer services online, players turn to offshore casinos to play fast slots and many other trending games.
These sites offer private, instant payments using cryptocurrency as well as traditional payment methods, as well as access to some of the latest variations of online card games, but they aren’t regulated by the state.
No Jackpot Winnings
As one Floridian player found out, these aren’t the only rules that gamblers in the state have to follow. In the summer of 2023, Eduardo Cardoso was playing at the Seminole Classic Casino in Florida. Cardoso hit a purple patch, netting three jackpots in relatively quick succession and apparently bagging himself prize money worth more than $6,000.
However, when he came to collect the prize, the Cuban passport holder found the casino refused to pay out, citing its rule that they always pay out winnings promptly unless “specifically dictated by Treasury Department regulations.”
Cuban Economic Sanctions
The regulation that Cardoso had fallen foul of related to the fact he is considered a Cuban citizen and holds a Cuban passport. Cuban citizens are subject to economic sanctions.
These sanctions prevented the lucky gambler from being able to collect his winnings unless he could prove he held another passport from a country without sanctions or that he had the right to reside in the US permanently. Cardoso promptly applied for documentation that would prove his right to reside.
Jackpot Pay Out
However, on receipt of the documentation and its presentation, the casino promptly paid out. The casino’s general manager, Edward Aguilar, said: “We’re very happy to confirm we paid Mr. Cardoso his winnings, which totaled over $6,000 after he provided us with the required identification documents.”
Cardoso said, after receiving his prize money: “With that money I am going to see my mom, my kids, it’s been 16 years since I see them. I feel like crying.”
He also cautioned other players who might end up in the same situation as him by saying, “If you don’t have documents, don’t play because you won’t get paid.”
Gambling Tax Laws
There are rules that players need to follow while playing in US casinos. As well as providing ID and proof of residency for players of certain nationalities, gambling winnings are taxable for US citizens. They are taxed as though they are earnings, and, in the case of big prizes, the casino itself might have to take a portion of the winnings.
Casinos have to take 24% of winnings on the spot if those winnings are considered a substantial amount. What constitutes a substantial amount depends on the game being played. $1,200 or more at slot machines and bingo, $1,500 for keno, and $5,000 for sweepstakes and lotteries all meet the criteria so if you are fortunate enough to win more than this amount, the casino should retain 24% of the tax.
The player may be able to claw or claim this back while filing annual taxes, however. Table games like roulette do not meet the same criteria because the casino cannot reasonably be expected to know how much the player might have cumulatively won or lost while playing. Online casinos licensed in the US should also abide by these rules, and players are always advised to keep records of their wagering.
Keeping Records Is Best Practice
Because winnings are taxable as though they are earnings, casino players and gamblers are recommended to keep extensive records. Players should record the games they played, the amounts they wagered, and any winnings they amassed.
This should include all forms of gambling, both physical and online. In most cases, losses can be offset against winnings, which means the player will generally only need to pay tax on net profits for the year.
Different States, Different Rules
It is also worth noting that gambling is not permitted in every state. California is one of many states where casino gaming is only allowed on tribal land. There are no retail casinos, and online casinos have not yet been regulated in the Golden State.
However, lotteries and some pari-mutuel betting are legal. Players who do play at tribal casinos or offshore casinos still need to record their wins and losses because they still need to report these to the IRS and pay the appropriate taxes.
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