Online casino tax question (New Jersey)

[MishSlots]

This may apply to other states/countries but specific to NJ when you hit a win of $1200 you are taxed on it and normally receive forms regarding it. It's pretty straight forward but there's one type of situation I was not sure about. I was playing where there was a bonus amount provided by the casino which was a 100% match on my deposit ($250 + $250) with a 20x wager requirement. I ended up hitting a small win then betting $10 per slot spin and won $3,500. However, I was unable to cash out this amount because it still had the wager requirement. I ended up playing through the wager requirement which was very high and once I was done spinning it resulted in about $2,000 which I cashed out.

Does anyone know if I would still be taxed on the original $3500 win itself since that essentially could not be cashed out without being played through?

[cocopop3011]

On 5/23/2020 at 1:27 PM, MishSlots said:

This may apply to other states/countries but specific to NJ when you hit a win of $1200 you are taxed on it and normally receive forms regarding it. It's pretty straight forward but there's one type of situation I was not sure about. I was playing where there was a bonus amount provided by the casino which was a 100% match on my deposit ($250 + $250) with a 20x wager requirement. I ended up hitting a small win then betting $10 per slot Spin and won $3,500. However, I was unable to cash out this amount because it still had the wager requirement. I ended up playing through the wager requirement which was very high and once I was done spinning it resulted in about $2,000 which I cashed out.

Does anyone know if I would still be taxed on the original $3500 win itself since that essentially could not be cashed out without being played through?

Hi, it seems like your post may have gone unnoticed. 

It would seem a bit strange for them to tax you on the original amount if you only cashed out $2000 but it's pretty hard to give a solid answer without knowing the exact state laws in the state.

[ValDes]

Indeed, somehow this post gone unnoticed... 

Well @MishSlots, I would agree that what matters at the end of the day is how much you cashed out. 

Still, I guess more reliable info you could get here - https://www.nj.gov/oag/ge/index.html

[MaklakovYukhim]

I think that it would not be right to tax the amount that you did not transfer to your account or did not cash, but if this question is still important, I think you can ask it to the tax office