How does Royal Caribbean pay out large-ish casino payouts?

[baldilocks]

My 'big' win was $6.88 on one penny in Las Vegas waiting for the Terry Fator show.

[PWP-001]

13 hours ago, BirdTravels said:

As long as you remember that brining in >$10K into some countries and specifically the US, requires that you declare that to customs. Doesn't matter if it is cash, checks, or bearer bonds. If you have more than $10K in monetary instruments you need to declare. You need to fill out the information on their website and report to CBP before leaving the terminal. 

 

Actually, your comment needs clarification. 

 

You are correct when you say "monetary instruments," but your comment that it "doesn't matter if it is cash, checks" is not accurate. 

 

Not all checks are "monetary instruments" by definition:  in the context of this this thread, if the casino did write a  check on board made payable to the winner, "Mr. Jack Pot Winner" and Mr. Winner has NOT endorsed the back of the check, then it is NOT by definition, a monetary instrument.

 

 

 

From the instructions on the back FinCen Form 105, which is the form US Customs will complete when returning with $10K or more of monetary instruments:

 

Monetary Instruments— (1) Coin or currency of the United States or of any other country, (2) traveler’s checks in any form, (3) negotiable instruments (including checks, promissory notes, and money orders) in bearer form, endorsed without restriction, made out to a fictitious payee, or otherwise in such form that title thereto passes upon delivery, (4) incomplete instruments (including checks, promissory notes, and money orders) that are signed but on which the name of the payee has been omitted, and (5) securities or stock in bearer form or otherwise in such form that title thereto passes upon delivery. Monetary instruments do not include (i) checks or money orders made payable to the order of a named person which have not been endorsed or which bear restrictive endorsements, (ii) warehouse receipts, or (iii) bills of lading.

 

In my first post, I shared personal experience and referred to FinCen Form 105 as a CTR, short for Currency Transaction Report, and that is not accurate.  Domestic banks use CTR's.

 

 

Lastly, I don't know what that long, long, comment from someone earlier sharing their experience was trying to convey, but I can tell you that I had absolutely NO ISSUES when I brought back large winnings.  I declared it on my paper form (2017) with a YES.  The agent escorted me to the office where I took a seat while the agent behind the counter looked at my form and got the a Form 105 and called me up to him.  I volunteered my W-2G but he said he didn't need it.  I was out the door in less than 5 minutes total.  

 

[Lionesss]

Side note

 

In Ohio you used to be able to claim your gambling losses on the lottery and use them to offset some of the taxes when you win big in a casino and/or Ohio Lottery.

 

A few years back I won $40,000 on the lottery.

In my travels I would check out the areas that sold lottery scratch offs or tickets.

 

Then I would casual check out the trash bin near it.

(Some call it dumpster diving)

 

After some searching I would leave with non-winning tickets.

 

When It was time to do our taxes the service we used just asked me to total losses and give her amount and keep the non winning tickets for a few years, in case audited.

 

There was a limit, I do not remember how much, but it did decrease the amount owed to Ohio.

 

Ohio no longer does this loss of gambling as a reporting system.

I am guessing if Ohio does not do it for taxes  because she said it is not done anymore than IRS must be the same.

So, no credit for losses.

 

Take care

[ngrund]

8 hours ago, Ret MP said:

100% right-on!

 

Several years ago, my wife won ~$3,000.00.  Got the W-2G, and at tax time, I claimed the exact same amount of my losses, as the win.  No problem.  BTW, some people tried to advise me that in order to claim Gambling Losses, you have to be a Registered Professional Gambler.  I couldn't find that anywhere in the IRS website.  So, I went through it.  Like I said, several years ago, at least 10. No problem, no issues, no letters from the IRS, zip, nada, nut'in.  

 

"Professional" gamblers can claim expenses and losses to offset other income (schedule c), regular folks can only deduct losses from winnings if itmnizing

 

The following rules apply to casual gamblers who aren't in the trade or business of gambling.:

 

https://www.irs.gov/taxtopics/tc419

 

 

[CFLRetired]

I remember one cruise someone said they won a little over $15,000 and bought numerous postal money orders and mailed them back to himself.  I believe he bought a few on each island visited.  His plan was to cash a few at a time.   

Edited October 9, 2022 by CFLRetired

[PWP-001]

36 minutes ago, Lionesss said:

Side note

 

In Ohio you used to be able to claim your gambling losses on the lottery and use them to offset some of the taxes when you win big in a casino and/or Ohio Lottery.

 

A few years back I won $40,000 on the lottery.

In my travels I would check out the areas that sold lottery scratch offs or tickets.

 

Then I would casual check out the trash bin near it.

(Some call it dumpster diving)

 

After some searching I would leave with non-winning tickets.

 

When It was time to do our taxes the service we used just asked me to total losses and give her amount and keep the non winning tickets for a few years, in case audited.

 

There was a limit, I do not remember how much, but it did decrease the amount owed to Ohio.

 

Ohio no longer does this loss of gambling as a reporting system.

I am guessing if Ohio does not do it for taxes  because she said it is not done anymore than IRS must be the same.

So, no credit for losses.

 

Take care

 

Provided that a taxpayer itemizes their deductions on their federal income tax return, the taxpayer may indeed deduct their losses to the extent of their winnings from gambling.

 

As an aside, I am guessing that a tax auditor would be very interested in a tax return where a tax preparer claimed gambling losses based upon another taxpayer's non-winning tickets found in the trash.

[E&D2004]

20 minutes ago, ngrund said:

 

"Professional" gamblers can claim expenses and losses to offset other income (schedule c), regular folks can only deduct losses from winnings if itmnizing

 

The following rules apply to casual gamblers who aren't in the trade or business of gambling.:

 

https://www.irs.gov/taxtopics/tc419

 

 

To be clearer, a casual gambler, who itemizes deductions, can deduct gambling losses up to the total amount of gambling winnings on Schedule A of the Federal Return.  If audited you will have to provide proof of losses.  On the other hand, until the 2018 tax law changes, a professional gambler (someone in the trade or business of gambling) could deduct losses along with the expenses of gambling, transportation, entertainment, food, lodging, legal and professional fees, etc. under Schedule C (business expenses).   The 2018 law limited the professional gambler deduction eliminating non wagering expenses.  So, the professional gambler no longer gets the bigger Schedule C deduction.  

[Lionesss]

4 minutes ago, PWP-001 said:

 

Provided that a taxpayer itemizes their deductions on their federal income tax return, the taxpayer may indeed deduct their losses to the extent of their winnings from gambling.

 

As an aside, I am guessing that a tax auditor would be very interested in a tax return where a tax preparer claimed gambling losses based upon another taxpayer's non-winning tickets found in the trash.

 

Yes, but I have seen some people spend $20 dollar bills on instant lottery, I could just say I have a gambling problem and over the course of a year spend 2-$3000 on lottery.

If I have tickets who is to say they were not mine.......

 

But cannot worry, not doing any more.

Post 2020 world  crud scares me.....not going in a trash receptacle clean or not it is trash

Lately only buy 2 scratch offs once a week when grocery shopping 

and 

only do slots on cruises (2 -3 cruises a year)

No super big winnings this year, only a few small ones.

 

Take care

[flamingos]

23 hours ago, Lionesss said:

“A” goes you were red alerted on facial recognition. It is our job to figure out why. 
Some people do not tell the truth. Most do.

 

This surprises me.  One would think that they would have some information about why the flag was placed there.  I mean, they bought had 20 bottles of liquor from the ship's duty free/brought on board at ports, or something like that.  

[Ret MP]

1 hour ago, ngrund said:

 

"Professional" gamblers can claim expenses and losses to offset other income (schedule c), regular folks can only deduct losses from winnings if itmnizing

 

The following rules apply to casual gamblers who aren't in the trade or business of gambling.:

 

https://www.irs.gov/taxtopics/tc419

 

 

Yep, but I was speaking to my experience with some friends that were trying to give me advice that turned out to be less than 100% factual to my particular situation.  My point without saying it directly, research research research.  Just about everybody has their own version of experiences that are almost identical with others.  So, human interaction with those that aren't actually professionals in the subject area could land you in trouble or missing something important.  I'm glad, especially in that case, that I do come from a culture of research and fact finding.  No, I'm not perfect though and I am getting old.  

[dani negreanu]

On our 1st cruise post-Covid, we had ~500$ in refundable OBC, accumulated over cancelled and change itinerary cruises.

 

We limit ourselves to the 25 cents, up to 10$ per day.

 

1st time we won "big" twice -- 152$ & 163$ 😉. I deposited both cash winnings in my on board account, figuring I'll get it back on my cc [converted automatically in shekels, the Israeli currency], along with the remaining OBC.

 

I have no need for cash dollars... On the last day, I went to GS just to be sure that this will be the process, and turns out that I absolutely have to receive the winnings back in cash, since repaying them via cc will be considered "money laundering".... Had I not ask, the winnings were lost.

 

I tried to "plead" my case, claiming that it is plain that I've used my sea pass to play the slots and I didn't bring any "outside" money to "launder" -- to no avail....

 

[klfrodo]

On 10/8/2022 at 5:39 AM, Thesandman12 said:

cash, at sea no taxes.

Sorry but you are mistaken.

If you are a US citizen and win a slot jackpot of $1199 or more (might have just been raised), under US law, the ship is required to report this winning to the IRS. You will receive a W2G either before you leave the ship or it will be mailed to you. You will be required to claim this winning on your end of year tax forms as Earned Income.

[Lionesss]

11 minutes ago, flamingos said:

 

This surprises me.  One would think that they would have some information about why the flag was placed there.  I mean, they bought had 20 bottles of liquor from the ship's duty free/brought on board at ports, or something like that.  

 

I think it was a test to see if I would own up to the $$$.

 

Yes, the cruise ship provides all information to customs....we knew that......

[Ret MP]

This may have been mentioned, I'm in a hurry this morning and only skimming posts.  But, it doesn't matter if a casino pays you with monetary instruments, in rubber duckies, or in Ramblers, it has to, eventually, be claimed on your yearly taxes some how.  Professional gambler or not.  

[flamingos]

4 minutes ago, Lionesss said:

 

I think it was a test to see if I would own up to the $$$.

 

Yes, the cruise ship provides all information to customs....we knew that......

Good, that had me confused.  

 

We got stopped at Customs after an overseas flight because we declared our cheese (dairy) and the funny Customs guy told us cheese jokes for a few minutes before we moved on.  🙂

[Lionesss]

One final comment.

 

I thought it was interesting that the cruise ship guest services would not give me the claim form, but took the time to report myself as well as others who had winnings that were over the limit.

 

I was not alone.

 

But do to privacy act, no one knew why we were in that room.

Until I had to do that government form as well as enter it in the site and holding it up to the high windows so I could have cell service.

 

Well, not everyone was honored with the privacy act....

The lady that was having every Item removed from her suitcase, purse, and then scanned all bags through x-ray machine...................she did look scared.........did not know if they found anything, but she was there when I arrived and still there as I was set free.

 

Be safe

[HicksRA]

I just wonder how the IRS has any jurisdiction over money won on a Bahama registered ship in International waters. 

[Ret MP]

39 minutes ago, HicksRA said:

I just wonder how the IRS has any jurisdiction over money won on a Bahama registered ship in International waters. 

They granted that authority to themselves 🤫.  Actually, congress has.  I believe the thinking is that ALL Americans will pay taxes on ALL income, no matter where it is earned, with a few exceptions.  However, if you never introduce the income into the U.S., it's not taxed, as I understand it, no, I've never researched that.  So, open a bank account in the Bahamas, put your winnings in there, and the next time you go to there, treat yourself to a hotdog or a mansion. 

[Lionesss]

1 hour ago, HicksRA said:

I just wonder how the IRS has any jurisdiction over money won on a Bahama registered ship in International waters. 

 

Good question

 

I have two guesses, neither of which could be true.

 

1.  Because we sailed from a US port?  doubt this is reason.

2.  Because they said so and pay taxes.................probably

[MikeTheNFT]

4 hours ago, HicksRA said:

I just wonder how the IRS has any jurisdiction over money won on a Bahama registered ship in International waters. 

This has gone way beyond my original question, but...

 

The IRS has jurisdiction over every penny you earn anywhere in the world (if you're a US citizen). If you wander off to Thailand and get a job at a random coffee shop, you still pay US Federal taxes. The government always wants its due... lol

[ngrund]

1 hour ago, rennyn said:

This has gone way beyond my original question, but...

 

The IRS has jurisdiction over every penny you earn anywhere in the world (if you're a US citizen). If you wander off to Thailand and get a job at a random coffee shop, you still pay US Federal taxes. The government always wants its due... lol

Yep, that's why people who live and work overseas have been thinking about or have been giving up their US citizenship

[HappyTexan44]

As long as I won the money before the last port, I'd think about opening a foreign bank account just to avoid bringing it back.  Depends largely on the port.   Mexico, No.  Most of Europe, Yes.  

[flamingos]

1 hour ago, rennyn said:

This has gone way beyond my original question, but...

 

The IRS has jurisdiction over every penny you earn anywhere in the world (if you're a US citizen). If you wander off to Thailand and get a job at a random coffee shop, you still pay US Federal taxes. The government always wants its due... lol

That's what surprised my daughter when she had a summer job in another state - she had to pay taxes on her income in the state where she earned it, even though she does not live there.

[klfrodo]

This is too funny.

Some people actually think they can walk in to a bank in Nassua, Cozumel, or some other foreign country and just say" Hi, I'm Bob, I want to open a bank account and deposit $25K. 🤣

 

International and National banking laws don't work that way. Can be done eventually, but I would imagine the lawyers fees and Incorporation fees would tie up a huge chunk. Much more than the IRS.

[Biker19]

2 hours ago, rennyn said:

If you wander off to Thailand and get a job at a random coffee shop, you still pay US Federal taxes.

Very unlikely any job like that will pay at least $110K/year - the IRS exemption when you work overseas.