They aren’t getting paid extra for that paperwork. Why? Because the casino withholds the money, keeps a separate accounting of how much they withhold for each person, and makes a monthly deposit of tax money they held back. The smaller casino jackpots of a few thousand generally do not have taxes taken out unless you ask.
Most people assume that they will take taxes out of your winnings. You need to keep the form they give you at the casino or lottery center until the next spring for tax time. They aren’t going to spend their time and money mailing you new ones. Hmmmm… nothing from the casino… Maybe the casino didn’t report it? Maybe I don’t have to report it? NO! The form they gave you at the time of the claim is the ONLY form you will get. Tax time comes next spring and you gather all your stuff that comes in the mail. They issue you a form W2-G at the time you make the claim. It’s not for routine paperwork, they are informing the IRS that you won money.
The slot machine says, “see attendant.” When this happens, you are asked for ID and your social security number. You need to go to the lottery center to claim prizes over $600. But when you win more than a few hundred on the lottery or at the casino, the government knows. Others wear winning like a badge of honor.
